EUR/USD nudges higher approaching 1.0800 after US PPI data

The Euro has ticked higher following the release of weaker-than-expected US PPI data, yet it remains within previous ranges, ahead of the outcome of the Federal Reserve’s meeting, due later today.

US PPI data weighs on the USD

The US, Producer Prices remained flat in November, against expectations of a 0.1% advance, with the yearly inflation easing to 0.9% from 1.2% in October. The Core PPI has been unchanged for the second month in a row, and 2% up in the year, below market estimated of 0.2% and 2,!% increases respectively.

Earlier today, Eurozone data revealed that the region;’s industrial output declined beyond expectations in October, although the impact on the pair was marginal. 

The main event today, however, is the Federal Reserve;’s monetary policy decision.  The bank is almost certainly keeping rates unchanged but the MPC member’s interest rate projections and Chairman Powell’s Press conference will be scrutinised for clues about the bank’s policy plans.

EUR/USD Technical analysis

The pair is fluctuating without a clear direction on  Wednesday above an important support area at the 50% Fibonacci retracement of the October - November rally, at 1.0730.

Immediate resistance remains at 1.0800/15, where previous highs meet the 4h 50 SMA ahead of 1.0880. Supports are at the mentioned 1.0730 and early November lows at 1.0660.

Technical levels to watch