EUR/USD (current price: 1.0619)
The German WPI Index was well above the expected 0.3% in January, coming in at 0.8%. The inflationary data failed to boost the common currency, as the Dollar trended higher throughout the day. The most traded currency pair has lost ground on six out of the last seven sessions after hitting 1.08 in late January. The cross is now trading in the middle of the trading range between 1.0850 and the previous lows near 1.0350, still well below the 200-day Moving Average that is found near 1.0975.
Our assessment: EUR/USD is still only 2.5% above the 14-year lows around 1.0350. The long-term trend is still neutral, despite the short-term drop in the last two weeks.
