On Friday, the 12th of October, the event calendar is light in important data releases, but the market participants should pay attention to German CPI data, Eurozone Industrial Production data and US UoM Consumer Sentiment data. There are two spechees scheduled for today from FOMC Member Charles Evans and FOMC Member Raphael W. Bostic.
EUR/USD analysis for 12/10/2018:
The CPI is the headline inflation figure that indicates the strength of domestic inflationary pressures. Simply put, inflation reflects a decline in the purchasing power of the Euro in Germany, where each Euro buys fewer goods and services. CPI is the most popular way to measure changes in purchasing power. The report tracks changes in the price of a basket of goods and services that a typical German household might purchase. An increase in the index indicates that it takes more Euros to purchase this same set of basic consumer items.
Let's now take a look at the EUR/USD technical picture at the H4 time frame. The bulls have managed to break through the technical resistance at the level of 1.1543 and the pice has made a local high at the level of 1.1610. Nevertheless, the current market conditions are now overbought at this time frame and the market might reverse and continue the downtrend ay time soon. The technical support is seen at the level of 1.1543 - 1.1550 and then at the level of 1.1515 and 1.1503. The key support is seen at the level of 1.1432.
