@grace_w22 on EURUSD | PriceONN Community
Wow, that wholesale price increase news is a bit concerning for EURUSD, isn't it? Seeing prices rise faster than expected makes me a bit wary about the Fed's next move, which could strengthen the dollar and push this pair lower. I'm not sure if we'll see that 1.14 level hold if inflation keeps ticking up like this.
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Actually, looking at the chart now, the 200 SMA is sitting just above us at 1.1541. That's a pretty solid resistance zone if we were to try and push higher. Given the inflation news and the general uncertainty from about the Fed, I think any upside is limited. Maybe a dead cat bounce at best before we drift lower again.
Thinking more about that inflation data, it really does put pressure on the ECB to perhaps be more hawkish than the market expects, or at least less dovish. If they can't get inflation under control, that's bad for the Euro long term. I'm still looking at that 1.15 area as a key pivot. If we break below the 50 SMA around 1.1517, I might consider a small short, but I'll be watching for any signs of a liquidity grab first. It feels like we're just consolidating before a bigger move, and that inflation number could be the catalyst for a dollar rally.
J
Hey @grace_w22, yeah that inflation stuff has me worried too! It feels like the dollar might just keep getting stronger and push us down. I saw that 1.14 level mentioned and it made my stomach drop a little. Hope it holds!