Today, as trading in Europe is soon to get underway, the single currency is trading at 1.2308 against the greenback, marking a modest rise of 0.16%. In the wake of these small gains, the US dollar index has slipped by 0.13% to trade at 89.89. The euro has been slowly rising against the dollar since it rebounded yesterday from the 1.2240.

There aren’t any statistical publications due from the Eurozone or the US today. At 12:30 (GMT+3), the UK will publish inflation figures for January. The consensus is that annual inflation in January will drop to 2.9% from a value of 3% in December. Although this forecast falls in line with the Bank of England’s expectations, today’s figures could increase volatility on the pound at the time of publication.

EUR/USD

On the 4-hour timeframe (H4), the pair is continuing to test the resistance line of the trend:

This resistance line of the upwards trend has been holding up the euro from rising further against the dollar.

On the hourly timeframe (H1), the EUR/USD pair is making its first attempts at exiting the consolidation range of 1.2190 – 1.2290 formed in mid-January:

If the euro successfully exits this range, it should rise at least as far as the low within the double top formation on the hourly timeframe, i.e. to around 1.2345 – 1.2385.

At the time of writing, the EUR/USD pair is trading at 1.2318.