EUR/USD: back on the bullish track

Valeria Bednarik FXStreet

EUR/USD Current price: 1.1829

The EUR/USD pair regains the 1.1800 level ahead of the US opening, getting a boost from poor US inflation data. According to the official release, the consumer price index rose a seasonally adjusted 0.1% in July, while the core figure which excludes food and energy, also rose 0.1%, both below expected. When compared to July 2016, inflation rose 1.7% against market's expectations of a 1.8% advance. Inflation has been softening in the US ever since the end of the first quarter, fueling concerns about Fed's capability to maintain its tightening path. Adding to the political turmoil between the US and North Korea and the menace of nuclear attacks between the two nations, the dollar has no chances.

The EUR/USD pair trades at weekly highs around 1.1830, regaining its bullish tone after hesitating around 1.1750 for most of the last three days. Intraday technical readings support additional gains, as in the 4 hours chart, technical indicators have accelerated north within positive territory, whilst the price bounced finally from its 20 SMA that anyway presents a modest bearish slope right above a bullish 100 SMA. The pair has scope now to extend up to 1.1850/60, while beyond this last, the next bullish target comes at 1.1909, the yearly high posted earlier this month.

Support levels: 1.1.1810 1.1780 1.1750

Resistance levels: 1.1860 1.1910 1.1950

View Live Chart for the EUR/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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