Medium term bias for the pair remains on the downside as pressure continues to weigh in the Euro Zone after a disappointing Consumer Price Index was released on Friday. The euro area’s flash consumer price index rose 0.7% on year in January, according Eurostat, missing market calls for a 0.9% reading, which softened the single currency. Also in Europe, the euro area’s unemployment rate came in at 12.0% in November, unchanged from October though better than market calls for a 12.1% reading.
Technically, a possible reversal is the case for the pair on the daily charts as rise from support 94.108 has topped out at resistance 145.670, the highest it made since year 2012. With price closing clearly below the 55EMA on the daily charts, with also RSI, Stochastic and MACD all signaling for a fresh bearish run, medium term bias for the pair remains strongly on the downs side. Further fall to support 131.300 is expected.
However in the long term picture, a clear break of resistance 145.670 could see further demand to 150.000 and 160.000 psychological zones. A key economic important news release to watch out for in the coming week is the U.S Employment and Unemployment statistics.