EURUSD: North American session could be quite volatile

The EURUSD pair extended gains on Tuesday, February 9. The price action started off near 1.2050, the pair moved higher in intraday trading without any major corrections and closed the session at 1.2120.

The key macro data point yesterday was Germany’s trade balance for December, which totaled EUR 16.1 bln, although the median forecast had called for a slightly better reading of EUR 16.3 bln. The November trade balance was downwardly revised from EUR 16.4 to 15.9 bln.

Today, on February 10, after a correction to 1.2110, the pair traded higher and reached 1.2130, continuing to move within an ascending channel. We are still seeing implementation of an upside scenario from 1.1952 to 1.2190.

The harmonized consumer price index in Germany for January was released this morning and the indicator showed a 1.6% YoY increase in prices, or broadly in line with expectations. A string of January CPI data is due out this afternoon stateside. Fed Chairman Jerome Powell is expected to speak towards the end of the day. The North American session could be quite volatile for the key pair.