The EUR/USD pair is still rising a little closer to the resistance of the 1.1825 following the publication of the PCE core US.
The expenditure of households in the US have slowed to 0.1% from 0.3% as expected.
However, the PCE core reading of inflation preferred by the Fed, has disappointed by posting 0.1% m/m as previously, against 0.2% expected, but a slowdown surprise to 1.3% y/y from 1.4% previously.
On the Forex the Dollar declined broadly, pushing EUR/USD towards the key resistance of 1.1825, a former key support tested as resistance, and which corresponds to 38.2% Fibonacci retracement of the last wave to the downside. .
Above 1.1825 higher could be strengthened and continue in the direction of 1.1850 and 1.1860 (50% Fibonacci) in a first time, and then eventually to 1.1900 (61.8% Fibonacci at 1.1894) and 1.1920.
Conversely, if the threshold is resilient and that the downward pressure of short-term back, we would return first on the 1.1800, 1.1775, and then 1.1750, before continuing in the direction of the recent low and major support around 1.1720.
In effect, the support zone of the 1.1720/1.1680 proved strong enough to stem the fall of EUR/USD, and could still remain difficult to overcome in the very short term.
A break below 1.1680 would trigger the downside correction for the short term in the direction of 1.1650, 1.1620, 1.1600 and 1.1580.
On the economic calendar we will follow still this afternoon, the confidence of consumers in the US and a speech from Draghi, but their impact should be moderate.
Also note that this evening we will have a quarterly closing, which can cause movement adjustment of positions unexpected.
The pair EUR/USD is currently trading at 1.1823 on the Forex.
Chart EUR/USD H1
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This chart has been realized with the trading platform TradingStation 2 provided by FXCM France.