EURUSD Analysis: Euro rebounded strongly, but the reversal trend still depends on US inflation  

In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the EURUSD for JAN 15, 2025. 

Fundamental Analysis of EURUSD 

EURUSD Key Takeaways 

• PPI data: The US PPI data in December rose by 3% from the previous value, continuing to hit a new high since February 2023. The monthly rate was 0.2%, lower than the expected 0.3%, and cooled down from the previous value of 0.4%, the lowest since September 2024. 

• Schmid’s speech: Kansas City Fed Chairman Schmid said that if Trump’s tariffs derail inflation or employment, the Fed will take action. 

• Inflation data: The United States will release the December CPI data. It is expected that the annual CPI rate in December last year will rebound to 2.9% from 2.7% in November last year, and the monthly rate will remain unchanged at 0.3%; the core CPI year-on-year growth rate is expected to be 3.3%, higher than the Fed’s 2% target, and the same as the previous three months. 

Technical Analysis of EURUSD Daily and Hourly Charts 

EURUSD Daily Chart Insights 

(EURUSD Daily Price Chart, Source: Ultima Markets MT4) 

• Fair value gap: The black rectangular box on the chart is the fair value gap of the downward trend. Yesterday, the euro against the US dollar started a rebound trend, and today’s Asian session is about to approach the fair value gap. The gap is a strong resistance price, and beware of the rebound of the exchange rate being blocked and continuing to fall. 

• Price Action: Yesterday, the exchange rate rose strongly, and combined with the candlestick chart of the previous two trading days, the price action of the morning star was formed. In theory, this is a signal of bottoming reversal. However, it is still necessary to wait for the exchange rate to break through the resistance gap and the downward trend line to increase the probability of reversal. 

EURUSD 1-hour Chart Analysis 

(EURUSD H1 Price Chart, Source: Ultima Markets MT4) 

• Stochastic oscillator: The indicator enters the overbought area and is about to send a short signal. It suggests that the exchange rate may give priority to falling adjustments during today’s Asian session. 

• MA pattern: The purple 13-period MA has just crossed the black 65-period MA, suggesting that the current bullish force has the upper hand. However, it is necessary to wait for the black 65-period MA to cross the 200-period MA to clearly indicate the arrival of the bullish trend. 

• Key price: If the exchange rate accelerates to break through the upper 1.03228 resistance and the upward channel line today, the exchange rate will clearly start a period of upward trend this week. On the contrary, if the exchange rate falls below the key support price of 1.02743, short-term short-selling opportunities will still be of concern. 

Pivot Indicator Insights for EURUSD 

(EURUSD M30 Price Chart, Source: Ultima Markets APP) 

• According to Pivot Indicator in Ultima Markets APP, the central price of the day is established at 1.0270, 

• Bullish Scenario: Bullish sentiment prevails above 1.0270, first target 1.0335, second target 1.0355; 

• Bearish Outlook: In a bearish scenario below 1.0270, first target 1.0255, second target 1.0240. 

How to Navigate the Forex Market with Ultima Markets 

To navigate the complex world of trading successfully, it’s imperative to stay informed and make data-driven decisions. Ultima Markets remains dedicated to providing you with valuable insights to empower your financial journey. 

For personalized guidance tailored to your specific financial situation, please do not hesitate to contact Ultima Markets. 

Join Ultima Markets today and access a comprehensive trading ecosystem equipped with the tools and knowledge needed to thrive in the financial markets. 

Stay tuned for more updates and analyses from our team of experts at Ultima Markets. 

—– 

Legal Documents 

Ultima Markets, a trading name of Ultima Markets Ltd, is authorized and regulated by the Financial Services Commission “FSC” of Mauritius as an Investment Dealer (Full-Service Dealer, excluding Underwriting) (license No. GB 23201593). The registered office address: 2nd Floor, The Catalyst, 40 Silicon Avenue, Ebene Cybercity, 72201, Mauritius. 

Copyright © 2025 Ultima Markets Ltd. All rights reserved. 

Disclaimer   

Comments, news, research, analysis, price, and all information contained in the article only serve as general information for readers and do not suggest any advice. Ultima Markets has taken reasonable measures to provide up-to-date information, but cannot guarantee accuracy, and may modify without notice. Ultima Markets will not be responsible for any loss incurred due to the application of the information provided.