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EUR/USD forex signal - Eurozone Final CPI - 23 Feb 2018

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Signal Details
Entry Price: 
1.2250
Take Profit: 
1.2100
Stop Loss: 
1.2351
Direction: 
Sell
Result: 
Loss
How we trade
4.8/5 of 5 ratings

The European Statistics agency, Eurostat will be releasing the final inflation figures for the month of January today at 10:00 GMT. According to the economists polled, no changes are expected as headline CPI is expected to rise at a pace of 1.3% as initially reported during the flash estimates. Core CPI is also expected to remain unchanged at 1.0% on the year.

The data will confirm that inflation in the Eurozone had peaked out during last year as consumer prices started to fall. Despite the increase, consumer prices in the Eurozone remain well below the ECB's 2.0% inflation target rate.
Today's inflation figures will likely be watched by investors. However, the European Central Bank had previously warned that inflation could ease in the first quarter of 2018.

The euro currency has been broadly stable in the past few weeks albeit, the single currency was seen edging lower after another failed attempt to rise past the previous highs that was established. Furthermore, next week's parliamentary elections in Italy remain a major event risk for the EURUSD. This could potentially keep any gains limited.

The forex signal of the day is EURUSD. The currency pair was seen breaking past the previous support level established at 1.2363 - 1.2330 and the euro was seen retracing back to this level late yesterday. As long as the resistance level holds, we expect to see further downside in the currency pair.

Therefore, it is ideal to short EURUSD at 1.2250 with stops placed above the recent highs near 1.2351 while targeting 1.2100. We expect EURUSD to continue posting declines as price is expected to slip towards 1.2100 in the near term.

forex signal eurusd 23 feb 2018

Disclaimer: The article is written for informative purposes only and it is not financial advice. The author does not have any position in the currency pairs mentioned, and no plans to initiate a position. He wrote the article himself and expressed his own opinions. He has no business nor personal relationships with any mentioned government entities or stocks. Readers should not treat any opinion expressed by the author as a specific inducement to make a particular trade or follow a particular strategy, but only as an expression of his opinion.