EURUSD

In the new week, the presentation expected from Fed Chairman Powell before the Senate and the House of Representatives brings important developments regarding the central bank to the agenda. Speeches at events featuring prominent figures such as Cleveland Fed President Hammack, New York Fed President Williams, Atlanta Fed President Bostic, and Bank of England (BoE) President Bailey will attract investors' attention. Among the most critical data of the week are the US Consumer Price Index (CPI) for January, along with Core Retail Sales, fourth-quarter growth data from the Eurozone and the UK, and the expected January CPI figures from Germany and Switzerland.

The Classic Dollar Index shows general optimism above the 233-day exponential moving average (105.05) while starting the new week above the 34-day average (107.75), drawing attention. The strong momentum of the DXY may sustain short-term pressures on the EURUSD and GBPUSD pairs. The EURUSD pair is trading below the 55 and 233 period averages (in the range of 1.0375 – 1.0430), displaying a negative outlook. This situation could create new pressure towards the 1.0175 low point, with the 1.0270 intermediate support level to be monitored.