German CPI and Trade Data Support Euro – Analysis for EUR/USD, EUR/JPY, EUR/GBP

By:

Arslan Ali

Published: Dec 20, 2024, 11:00 GMT+00:00

Key Points:

The euro remains steady, supported by Germany’s CPI at 2.7% and GfK Consumer Climate improving to -21.3.
EUR/USD shows resilience at 1.03747; a break above 1.04223 could target 1.04725, while below 1.03432 risks further declines.
Traders monitor Belgian Business Climate and Consumer Confidence for further euro sentiment as German PPI exceeds forecasts.

In this article:

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Market Overview

The euro remains steady, supported by Germany’s stable CPI data at 2.7% and improving GfK Consumer Climate, which rose to -21.3. A widening current account surplus of 25.8B indicates robust trade flows, while German PPI increased by 0.5%, exceeding forecasts.

However, market sentiment was cautious ahead of the Belgian Business Climate and Consumer Confidence reports.

Final CPI at 2.2% signals contained inflationary pressures but below earlier projections, creating mixed outlooks. Traders watch closely for further clues from German PPI trends and broader sentiment updates.

EUR/USD – Technical Analysis

EUR/USD Price Chart – Source: Tradingview

The EUR/USD is trading at $1.03747, up 0.16%, as the pair shows resilience near the pivot point of $1.03432. Immediate resistance is at $1.04223, with further upside targets at $1.04725. On the downside, support is seen at $1.02864, followed by $1.02301.

The 50 EMA at $1.04326 and the 200 EMA at $1.05017 highlight persistent bearish pressure, as the price remains below both averages.

A sustained break above $1.04223 could ignite bullish momentum, targeting the $1.04725 level. However, failure to hold above the pivot may lead to renewed selling pressure, with a possible slide toward $1.02864.

EUR/GBP – Technical Analysis

EUR/GBP Price Chart – Source: Tradingview

The EUR /GBP is trading at 0.82918, showing a modest gain of 0.04% as it consolidates around its pivot point. Immediate resistance is observed at 0.83258, with the next hurdle at 0.83516.

On the downside, immediate support is at 0.82732, followed by a stronger level at 0.82510. The pair is navigating below the 50 EMA at 0.82710 and the 200 EMA at 0.82836, signaling lingering bearish momentum.

A decisive move above 0.82918 could shift sentiment toward bullish, targeting the resistance at 0.83258. Conversely, failure to hold above the pivot could lead to further declines toward 0.82732.

EUR/JPY – Technical Analysis

EUR/JPY Price Chart – Source: Tradingview

The EUR/JPY is trading at 162.71, down 0.27%, hovering slightly above the pivot point at 162.34 on the 2-hour chart. Immediate resistance is positioned at 163.80, with the next significant hurdle at 164.77. On the downside, support levels are marked at 161.28 and 160.08.

The pair trades above its 50 EMA at 161.83 and 200 EMA at 160.83, maintaining a bullish tone for now. A sustained move above 162.34 could fuel further gains toward 163.80, while a break below this pivot risks triggering a sharper selloff.

About the Author

Arslan Aliauthor

Arslan is a finance MBA and also holds an MPhil degree in behavioral finance. An expert in financial analysis and investor psychology, Arslan uses his academic background to bring valuable insights about market sentiment and whether instruments are likely to be overbought or oversold.