EUR/USD remains in a sideways range as traders await US October CPI data, with the pair facing heavy offers at the 1.1247 Fibonacci resistance level.
The Euro's two-day recovery has stalled at the 1.1247 Fibo barrier (23.6% of 1.1711/1.1104), with repeated rejections and long upper shadows pointing to heavy offers. Today's US October CPI is the decisive catalyst: elevated inflation keeps strong expectations for a December Fed rate hike and a possible tightening cycle in early 2027, which would favour the Dollar, though a significant drop in oil prices may temper that. Until a firm break above 1.1336 (38.2% Fibo) or below the range floor, sideways trading dominates.
The EUR/USD pair maintains a firm tone but struggles to clear the 1.1247 Fibonacci barrier, marking its second day of recovery. Market participants are now focused on today's US October CPI report to determine if inflation data will solidify expectations for a December Federal Reserve rate hike.
Resistance sits at 1.1247, 1.1272, 1.1300 and 1.1336; support at 1.1206, 1.1188, 1.1130 and 1.1100. A confirmed break above 1.1336 would signal an end to the range and open the way higher, while action capped at 1.1247 points to more sideways trading.
US inflation is near double the Fed's target and core inflation is elevated, feeding strong expectations for a December rate hike and a possible tightening cycle in early 2027. The CPI report today should provide fresh direction signals for the pair, though falling oil prices could soften the hawkish effect.