EURUSD: Pair Remains Above 1.13 After EU Inflation Numbers
|The greenback has lost momentum over the last couple of days and the Euro has managed to climb back above the key 1.13 level, where it also remained on Friday.
Traders paid attention to today's EU inflation numbers, which came out without any revisions. The year- on-year CPI change remained at 2.2 percent, whilst the core gauge stayed at 1.1 percent. The ECB expects the core inflation to rise significantly over the next quarters, according to Mario Draghi's words.
Moreover, this week's EU GDP numbers are in line with expectations as well, with the yearly print remaining at 1.7 per cent and the quarter-on-quarter change standing at 0.2 percent.
Fundamentally, the US economy is still performing better than the eurozone and therefore, the greenback could be favored more than the Euro over the next months.
Technically speaking, the 1.13 level remains the key level as the latest breakdown to fresh cycle lows seems to be only a bearish trap and the inability to remain below 1.13 provides bulls with some edge. However, the Euro needs to jump above the bearish trend line, which is currently at 1.14 and above another strong resistance of 1.14350 in order to negate the immediate bearish trend line.
On the downside, the first support stands at 1.13 and if broken, bears could target the current cycle lows slightly above the 1.12 handle. Staying below 1.13 could confirm the long-term bearish trend, targeting the 1.10 psychological level in the medium-term.
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