We’ve still got one day to go before Eurozone CPI is scheduled for release, but it might be worth looking at the current state of play.

We had US CPI out earlier in the week and the results came inline with expectations.

It would be good to get a strong result in the Eurozone and lacklustre inflation is one of the key issues facing Mario Draghi. He wants to reduce his failed stimulus program, but he needs some degree of inflation to help it work out.

Key Levels

The wider range is now 1.2200-1.2500. Of recent time we’ve seen that tighten to 1.2300-1.2400. These are obviously ballpark levels, but I don’t like to obsess over perfect technical levels are there is really no such thing.

I just can’t make a case for a breakout to the upside just yet. While we might drift higher I can’t see us pushing through 1.2500 in any meaningful way.

A far more likely scenario would be a breakout of 1.2200. The USD has been weak which has been helping the Euro hold up. But if we get the first slated rate hike in March out of the US, then things might change.

EUR/USD – 240 min Chart.