The Euro (EUR) inched higher against the US Dollar (USD) on Thursday, increasing the price of EURUSD to more than 1.1650 following some key economic releases. The technical bias remains bullish because of the higher high in the recent upside move.
EUR/USD Technical Analysis
As of this writing, the pair is being traded around 1.1657. A resistance can be noted around 1.2315, A horizontal resistance level ahead of 1.2456, a trendline resistance and then 1.2555, the major horizontal resistance area as demonstrated in the given below chart.
On the downside, a support can be noted near 1.1522, a key horizontal support ahead of 1.1700, the psychological number and then 1.1635, the high of December 1st, 2017 as demonstrated in the given above chart. The technical bias may turn bullish if it breaks the 1.2478 resistance level.
Eurozone Consumer Price Index
Euro zone inflation jumped far more than expected in May on higher energy costs, offering relief to the European Central Bank after market turbulence that has jeopardized its planned exit from a lavish stimulus program.
Inflation in the 19 countries sharing the euro rose to 1.9 percent from 1.2 percent in April, EU statistics office Euros tat said on Thursday, well above expectations for a 1.6 percent increase, as surging oil prices quickly fed through to consumers.
Excluding volatile energy and unprocessed food prices, inflation was 1.3 percent, from 1.1 percent in April. Another core inflation measure, also excluding alcohol and tobacco, was 1.1 percent in May, from 0.7 percent in April.
Trade Idea
Considering the overall price behavior of the pair over last few weeks, buying the EURUSD around current levels can proved to be a good decision in short to medium term.