EUR/USD is stable in Thursday trade. In the European session, the pair is trading in the mid-1.35 range. On the release front, Eurozone CPI remained unchanged at 0.5%, matching expectations. In the US, it’s a busy day with three key events, Building Permits, Unemployment Claims and the Philly Fed Manufacturing Index.
 Here is a quick update on what’s moving the pair.
- EUR/USD was steady in Asian trading. The pair is staying close to the 1.3530 line in the European session.
- Current range:Â 1.35 to 1.3530.
Further levels in both directions:Â Â Â Â Â Â 
- Below: 1.35, 1.3450 and 1.34.
- Above: 1.3550, 1.3585, 1.3610, 1.3650, 1.3677, 1.37 and 1.3740.
- The next support level is the round number of 1.35.
- 1.3550Â remains an immediate resistance line. 1.3585 follows.
EUR/USD Fundamentals
- 8:43 Spanish 10-year Bond Auction. Actual 2.09%.
- 9:00 Eurozone CPI. Estimate 0.5%, actual 0.5%.
- 9:00 Eurozone Core CPI. Estimate 0.8%, actual 0.8%.
- 12:30 US Building Permits. Estimate 1.04M.
- 12:30 US Unemployment Claims. Estimate 310K.
- 12:30 US Housing Starts. Estimate 1.02M.
- 14:00 US Philly Fed Manufacturing Index. Estimate 15.6 points.
- 14:30 US Natural Gas Storage. Estimate 99B.
*All times are GMT.
For more events and lines, see the EUR/USDEUR/USDEUR/USDEUR/USDEUR/USD.
EUR/USD Sentiment
- Yellen hints rate hike likely in 2015: Federal Reserve Chair Janet Yellen concluded two days of testimony on Capitol Hill on Wednesday, testifying before the House Financial Services Committee. Yellen declined to directly answer questions about when the Fed would begin to raise rates, but she did acknowledge that most economists expect the Fed to make a move in the third quarter of 2015. On Tuesday, the dollar moved higher when Yellen said that the economy still required monetary stimulus, but rates could increase sooner than expected if inflation and job numbers improved more quickly than anticipated. The Fed’s asset purchase program (QE) has flooded the economy with over $2 trillion, keeping interest rates at ultra-low levels, but the Fed has been steadily reducing the program since last December. Currently, the Fed is pumping $45 billion/month into the economy, and the next taper is expected in August, with plans to terminate QE in October, if the US economy cooperates.
- Euro inflation numbers match forecast: Eurozone CPI, the primary gauge of consumer spending, remained unchanged in June, posting a gain of 0.5%. This matched the estimate, and EUR/USD did not react to the reading. Eurozone Core CPI, which excludes volatile items, looked even better, climbing 0.8%. This also matched the forecast. Meanwhile, German ZEW Economic Sentiment, a highly regarded survey of institutional investors and analysts slipped to 27.1 points, short of the estimate of 28.9 points. The indicator has been falling steadily since last November, when it was above the 60-point level. The June figure is the weakest we’ve seen since November 2012. Eurozone ZEW Economic Sentiment brought no relief, as it plunged to 48.1 points, down from 58.4 a month earlier. The estimate stood at 62.3 points. These weak numbers have further raised concerns about the health of the German and Eurozone economies, and the euro could lose more ground.
- A Draghi drag? The president of the ECB maintained a dovish tone in his most recent press conference. With the next meeting not until early August, Draghi is free to release comments in his testimony in front of the European parliament. He will be asked about the AQR, TLTRO and other topics, but what interests the markets are his intentions about Euro-zone QE, something that can weigh on the euro.
More: EUR/USD in downtrend as USD is on the move – Elliott Wave Analysis
