EURUSD Consolidates Ahead Of US CPI

Euro after declining towards 1.0880 against the US dollar found support and started to trade in a range.

Euro Area Construction Output released by the Eurostat posted an increase of 0.3% in May 2015, just as the market expected.

US Consumer Price Index will be released by the US Bureau of Labor Statistics today, which is expected to come in at 0.1% in June 2015, compared with June 2014.

Euro Area Construction Output

Earlier during the London session, the Euro Area, which represents the output of the construction industry, in both the private and public sectors was released by the Eurostat. The outcome was in line with the forecast, as there was an increase of 0.3% in May 2015, which was similar to the last reading. The report stated that the major increases were from Slovakia (+3.8%), the Netherlands (+2.7%) and France (+1.0%). On the other hand, the negative contributors were from Slovenia (-6.2%), Poland (-4.8%), Bulgaria (-3.3%) and Hungary (-3.1%).

There was no major reaction from the Euro, as the shared currency continued to trade in a range against the US Dollar.

US CPI

Later today, there are many economic releases lined up in the US. The most important one is the Consumer Price Index (CPI), which is a measure of price movements by the comparison between the retail prices of a representative shopping basket of goods and services. It will be released by the US Bureau of Labor Statistics. The forecast is slated for an increase of 0.1% in June 2015, compared with the same month a year ago.

EURUSD Technical Analysis

The Euro declined recently to trade near 1.0880 against the US dollar. The mentioned level represents a major support area, as sellers struggled many times earlier to break it. So, a positive reaction is likely moving ahead.
Alternatively, if there is a break below 1.0880-60, then more downsides are possible in the short term.

Yours,
Vlad

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