EURUSD rallied back above parity but hit a ceiling around the 1.0100 major psychological mark. A pullback to nearby support levels might be needed to gather more bullish energy.

The Fibonacci retracement tool shows where more buyers might be waiting. The 38.2% is close by at the .9950 minor psychological mark, then the 50% level lines up with the area of interest at the .9900 handle.

A larger correction could reach the 61.8% Fib near the .9850 minor psychological level, which lines up with an ascending trend line visible on short-term time frames. If any of the Fibs hold as support, EURUSD could make its way back up to the swing high and beyond.

The 100 SMA is above the 200 SMA to indicate that the path of least resistance is to the upside or that support is more likely to hold than to break. The gap between the indicators is even widening to reflect strengthening bullish pressure.

Stochastic is already pulling higher to show that buyers are regaining the upper hand while exhausted sellers take a break. RSI also seems to be turning north, so EURUSD might follow suit while bullish momentum picks up.

The euro drew some support from the ECB’s 0.75% interest rate hike but was unable to sustain its climb well above parity. Data from the US economy also turned out strong, easing fears of a recession and boosting hopes of another 0.75% hike from the Fed.

The upcoming core PCE price index release might impact EURUSD later in the day, as this is the Fed’s preferred inflation measure. A slowdown from 0.6% to 0.5% is eyed, but a higher than expected result could mean more upside for the dollar.

Weak inflation data, on the other hand, could lead investors to price in lower odds of an aggressive tightening move from the Fed in their next meeting.