EUR/USD holds range after Eurozone data shows inflation slowing in November. Economists at Scotiabank note that the pair is likely to remain resilient after recent price action.

“Slower headline prices might provide ECB policymakers with the grounds for a slowdown in the pace of tightening – to 50bps – in Dec markets seem to be thinking but double-digit prices and stubborn core inflation will still likely worry the hawks. We look for EUR/USD to remain better supported on moderate dips for now.”

“The EUR is managing to hold in a relatively tight range around 1.0350 despite the negative price action seen earlier in the week (big, bearish rejection of the 200-day MA). That is no mean feat and suggests some underlying resilience in the EUR at this point.”

“We spot intraday support at 1.0320, firmer at 1.0240/50. Resistance is 1.0380 and (strong) at 1.0500/10.”

See: ECB to raise interest rates by only 50 bps in December after a decline in Eurozone inflation – Commerzbank

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