EUR/USD stuck as markets focus shifts to key US data

Earlier in the day, the EUR/USD pair was stuck in the middle at 1.0850. Tuesday’s US Durable Goods Orders fall in January was more than expected, and there was little to move the pair in either way. On Wednesday, investors will be watching for the most recent US Gross Domestic Product (GDP) statistics. As of this writing, the pair is down -0.07%, trading at 1.0844.

German Retail Sales and Consumer Price Index (CPI) inflation is slated for Thursday, followed by the US Personal Consumption Expenditure Price Index (PCE) inflation print.

US Durable Goods Orders printed at -6.1% in January, down from the -4.5% forecast compared to the previous month’s -0.3%. Germany’s Gfk Consumer Confidence Survey for March came in at the expected -29.0, recovering slightly from the revised previous -29.6.

Thursday’s German Retail Sales are forecast to print at -1.5% versus the previous -1.7%. Germany’s CPI inflation for the year ended February is expected to print at 2.6% versus the previous 2.9%.
US Core PCE inflation is expected to decrease slightly to 2.8% from the previous 2.9%. US GDP is expected to remain at 3.3% for the annualized fourth quarter on Wednesday.

Technically; the EUR/USD saw tight trading on Tuesday, drifting around 1.0850 after a quick recovery from the day’s low near 1.0833. The pair remains in a near-term pattern of higher lows, but an intraday ceiling near 1.0860 remains a key resistance level.

Despite firm technical resistance, EUR/USD has closed in the green for the last nine trading days as the pair drifts into the 200-day Simple Moving Average (SMA) at 1.0830. Upside momentum remains capped by last week’s peak bids near 1.0888.