The EUR/USD pair edged higher right after the US inflation data publication. The price turned to the upside and erased the latest losses as the Dollar Index crashed. DXY's deeper drop should force the greenback to lose more ground versus its rivals. It was trading at 1.0167 at the time of writing far above 0.9935 today's low.
You knew from my previous analyses that the US inflation data could have a big impact. The CPI rose by 0.4% less versus the 0.5% forecasted, while Core CPI reported a 0.3% growth versus the 0.5% growth expected. Furthermore, the Unemployment Claims came in worse than expected as well. The greenback lost significant ground as the FED is expected to deliver only a 50 bps hike in December.
EUR/USD Challenges Dynamic Resistance!Technically, the EUR/USD pair jumped far above the 1.0093 static resistance and now it has reached the median line (ml) which represents a dynamic resistance. After its strong rally, we cannot exclude a temporary retreat.
The bias is bullish, so further growth is in cards despite temporary retreats. Personally, I would like to see a temporary retreat before resuming its growth.
EUR/USD Outlook!A valid breakout above the median line (ml) and through 1.0197 could announce an upside continuation and could bring new longs with a first upside target at the R3 (1.0290).