EUR/USD faces hurdle around 1.0450 as DXY turns sideways, Eurozone HICP eyed

• EUR/USD is oscillating below 1.0450 as investors await Eurozone HICP.
• The eurozone inflation is expected to remain unchanged at 8.1% on an annual basis.
• Last week’s upbeat US inflation compelled the Fed to dictate a 75 bps rate hike.

The EUR/USD pair is experiencing barricades around 1.0450 as the US dollar index (DXY) has turned sideways after a pullback move from 104.66. The shared currency bulls witnessed a responsive buying action after hitting a low of 1.0370 on Wednesday.

A responsive buying action was recorded after the announcement of a bumper rate hike by the Federal Reserve (Fed). The Fed paddled its interest rates by 75 basis points (bps), higher than the consensus of 50 bps. It is worth noting that the release of the upbeat US inflation last week had pushed the consensus wheel to 75 bps as an 8.6% inflation figure demands a quick response from the authorities.

A bumper rate hike announcement brought an extreme sell-off in the DXY. The DXY is attempting a break above the psychological resistance of 105.00 but is likely to meet with significant offers by the initiative sellers.

Going forward, the asset will be driven by the Eurozone Harmonized Index of Consumer Prices (HICP), which will release on Friday. An annual HICP figure is expected to remain stable at 8.1%. Also, the core HICP that excludes food, energy, alcohol, and tobacco is seen unchanged at 3.8%.

EUR/USD technical analysis

The asset has formed a Spring near its potential support at 1.0397 on an hourly scale, which represents a buying tail. A buying tail is a responsive buying action, which takes place when investors find the asset a value bet. The 50-period Exponential Moving Average (EMA) is overlapping with the asset price, which signals a consolidation ahead. Meanwhile, the Relative Strength Index (RSI) (14) has shifted to 40.00-60.00, which adds to the consolidation filters.

EUR/USD hourly chart