EURUSD

While the markets continue to digest the effects of the US CPI data released at the beginning of this week, which was higher than expectations, today’s US Producer Price Index (PPI) and weekly unemployment claims data will determine the direction of the pair. A PPI figure that comes in higher than expectations could further postpone Fed's rate cut expectations, keeping demand for the dollar strong and putting pressure on EURUSD. Meanwhile, the CPI data from Germany that was announced yesterday in line with expectations did not create significant impact on the Euro side.

Technical Levels: 1.19505 - 1.18486 - 1.16944 - 1.15431 - 1.14907 - 1.13394 - 1.12375

In the continuation of the pullback, the supports at 1.15431 and below 1.14907 – 1.13394 are of critical importance. In possible recovery attempts, the 1.16944 level can be monitored as initial resistance. If a sustained move above this level is achieved, 1.18486 may come into play.