EUR/USD struggles near 1.0750 amid weaker European indicators

Wednesday saw minimal movement in the EUR/USD pair as European economic indicators continued to weaken. After hitting a small intraday high of 1.0784, the pair tested back into familiar terrain near 1.0750.

Since interest rates in the Eurozone peaked in September of last year, those who are interested in rate cuts will be eagerly observing the European Central Bank’s Economic Bulletin on Thursday for hints about how near the ECB is to granting markets a rate cut.

Germany’s MoM Industrial Production fell in December more than anticipated, coming in at -1.6% as opposed to the predicted -0.4%. The most recent Economic Bulletin from the ECB is scheduled to be released on Thursday at 9:00 GMT. For the year ending in January, it is anticipated that Germany’s annualized Harmonized Index of Consumer Prices (HICP) inflation would remain stable at 3.1%.

Although inflation is moving towards the Fed’s objectives, Adriana D. Kugler, a member of the Fed Board of Governors, pointed out that more work has to be done.

Technically, the EUR/USD pair is still stuck below 1.0800 and is now trading in the midweek on the south side of the 1.0800 handle. Although there is still little negative momentum, the pair is still trading into the bottom side of a congestion zone between the 50-day and 200-day SMAs, or about 1.0900 and 1.0850.

If sellers can’t get the EUR/USD down below December’s low bids at 1.0725, the pair could be drawn back into consolidation above 1.0800.