FX Markets have been treading water over the last few sessions as traders await key US inflation data this week. Most of the majors have been trading in relatively tight ranges with the dollar overall remaining on the back foot as Fed rate expectations have crept up with the market now pricing in 42 basis points of cuts in the year ahead. However, this could all change over the next couple of days with the monthly PPI and CPI updates due. The PPI numbers are due out in a few short hours and Euro is looking nicely placed for moves off key technical levels on the print. Short-term trendline resistance is now coming in just above 1.0800 which also coincides with the monthly high and a lower-than-expected result to the 0.3% increase for the headline number should see this level challenged in short order, however a stronger than expected result will probably have a greater impact given recent market moves and will push the pair back into recent ranges.
Resistance 2 : 1.0885 – April High
Resistance 1 : 1.0805 – Trendline Resistance and May High
Support 1 : 1.0758 – 200- Day Moving Average
Support 2 : 1.0651 – Trendline Support
