The Euro (EUR) inched higher against the US Dollar (USD) on Wednesday, increasing the price of EURUSD to more than 1.2350 following some key economic releases. The technical bias shall remain bullish because of a higher high in the ongoing downside move.

EUR/USD Technical Analysis

As of this writing, the pair is being traded around 1.2383. A support can be noted around 1.2162, an immediate horizontal support ahead of 1.2100 the psychological number and then 1.1979, another key horizontal support as demonstrated in the given below chart.

On the upside, a hurdle can be noted near 1.2453, an immediate horizontal resistance level ahead of 1.2500, the psychological level and then 1.2537, the high of the last major upside rally as demonstrated in the given above chart. The technical bias shall remain bearish as long as the 1.2300 resistance area is intact.

Germany Import Prices

German import price inflation in December was the lowest in over a year, though prices rose during the whole year 2017, erasing the decline seen in the previous year, preliminary data from the statistical office Destatis showed Monday. The import price index climbed 1.1 percent year-on-year, which was sharply slower than the 2.7 percent increase in November. The latest gain was the smallest since November 2016, when import prices rose just 0.3 percent.

On a month-on-month basis, import prices grew 0.3 percent in December. For the whole year 2017, import prices rose 3.8 percent versus a 3.1 percent fall in 2016. The latest increase was the highest since 2011, when import prices jumped 6.4 percent.

Trade Idea

Considering the overall technical and fundamental outlook, selling the pair around current levels may be a good strategy in short to medium term.