On Monday, the 14th of January, the event calendar is light in important data releases. The only two events during the whole trading session are Wholesale Price Index data release from Germany and Industrial Production data in the Eurozone.
EUR/USD analysis for 14/01/2019:
The Wholesale Price Index data are scheduled for release at 07:00 am GMT and the market participants expect the data to improve slightly and increase from 0.2% to 0.3% on the monthly basis. On the yearly basis, no change is expected, so the level of 3.5% should be left unchanged.
The Wholesale Price Index data measures changes in the prices paid by retailers for finished goods. Growth in wholesale prices usually precedes increases in retail prices, thus changes in Wholesale Prices can be used as an early indicator for inflation. While the CPI records price changes for retail goods, the WPI might pick up inflationary pressures before they reach the headline retail CPI report. The headline number is the percentage change in the index.
Let's now take a look at the EUR/USD technical picture at the H4 time frame. The market has broken below the dashed black trendline and went as low as the level of 1.1456. Currently, the price is consolidating in a small horizontal range between the levels of 1.1456 - 1.1483 and if the momentum will be weak, then the bears might push the prices lower towards the level of 1.1442 and 1.1421. Any violation of the level of 1.1421 will open the road towards the next technical support seen at the level of 1.1354.
