Key Moments
- EUR/USD trades around 1.1222-1.1223 in the Asian session as the US Dollar stays under pressure.
- Falling oil prices and optimism over a potential US-Iran deal weigh on the Greenback and ease inflation concerns.
- Traders focus on the US October CPI report due at 13:30 GMT for fresh direction on inflation and Fed expectations.
Euro Steadies Against Softer Dollar Ahead of CPI
The Euro is maintaining the prior session’s advance around 1.1222 against the US Dollar during Tuesday’s Asian trade. The EUR/USD pair shows resilience as the Greenback weakens in tandem with lower oil prices, which are helping to temper fears over renewed global inflation pressures.
The US Dollar Index (DXY), which tracks the Dollar against six major peers, is holding near the previous day’s decline at 101.67. At the same time, WTI crude is trading close to its more than two-month low of $84.65, a level reached on Monday.
Oil Retreat and US-Iran Optimism Pressure the Dollar
Analysts at MUFG note that Dollar sentiment remains subdued, stating that the currency “continu[ing] to weaken by the sharp decline in the price of oil, which is helping to ease market concerns over upside inflation risks.” MUFG further commented that “overall, the latest developments have clearly boosted investor optimism over the prospect of a deal to end the US-Iran conflict,” and argued that “a less prolonged energy price shock would help to dampen the case for a stronger US dollar.”
The slide in crude prices is also seen as a factor that could curb expectations for an extended period of tighter monetary policy from the Federal Reserve.
US CPI in Focus, Eurozone Supported by Cheaper Energy
Market participants are closely watching the United States Consumer Price Index (CPI) release for October, scheduled for 13:30 GMT, seeking updated signals on the inflation backdrop.
On the Eurozone side, the decline in oil prices is providing some support, as the region is a significant net importer of energy.
EUR/USD Technical Picture
On the daily chart, EUR/USD is quoted at 1.1223, trading near the 20-day exponential moving average (EMA) located at 1.1212. This positioning keeps the near-term outlook broadly neutral.
The Relative Strength Index (RSI) stands at 48.97, close to the 50 mark, indicating balanced momentum with no clear dominance from either buyers or sellers at this stage.
| Metric | Level | Comment |
|---|---|---|
| Spot price | 1.1223 | Daily chart reference level |
| 20-day EMA | 1.1212 | Keeps tone neutral |
| RSI | 48.97 | Signals balanced momentum |
| Immediate support | 1.1138 | Monday’s low |
| Key support | 1.1104 | Break exposes 1.1000 |
| Psychological level | 1.1000 | Target if 1.1104 fails |
| Major resistance | 1.1273 | High from November 4 |
On the downside, Monday’s trough at 1.1138 is identified as initial support. Below that, a stronger floor is seen at 1.1104, and a clear break beneath this zone would open the door toward 1.1000.
To the upside, the November 4 peak at 1.1273 stands out as the key resistance level that bulls would need to overcome to extend the recent advance.
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