FX.co ★ EUR/USD: upside continuation on lower US inflation

The currency pair rallied in the last hours and now it's trading at 1.0829 at the time of writing. You knew from my previous analysis that the bias is bullish and that the EUR/USD pair could approach and reach new highs. Technically, the rate tested and retested the near-term downside obstacles attracting more buyers.

Fundamentally, the US CPI dropped by 0.1% matching expectations, CPI y/y was reported at 6.5% as forecasted, while Core CPI rose by 0.3%. The Unemployment Claims came in better than expected but failed to save the greenback from the downside.

EUR/USD Bullish Momentum!

As you can see on the H1 chart, XAU/USD registered only false breakdowns below the upper median line (uml) and through the 1.0760 and now it challenges the weekly R2 (1.0820).

It has passed above the 150% Fibonacci line signaling strong upside pressure. The 1.0838 today's high is seen as an upside obstacle.

EUR/USD Forecast!

A new higher high, a valid breakout above 1.0838 could confirm further growth. After retesting the support levels, EUR/USD signaled strong buyers. A bullish closure above the former high is seen as a long opportunity.