EUR/USD: Bounce stalls near 1.1140, eyes US inflation data
- EUR/USD is struggling to post sustainable gains above 1.1140.
- An above-forecast China data failed to put a bid under the EUR in Asia.
- The dollar may run into offers on weak US CPI.
EUR/USD is flashing green, but the momentum of the bullish move from 1.1085 looks to have run out of steam in the 10-pip range of 1.1140-1.1150.
The hourly chart shows the pair has faced multiple rejections in the 1.1140-1.1150 range in the last 12 hours.
China's trade data for December released in Asia showed a big beat on both imports and exports – a sign of strengthening domestic and global demand conditions. Even so, the EUR failed to pick up a bid.
Focus on US data
The cost of living in the US, as represented by the consumer price index (CPI), rose 0.3% month-on-month in December, the official data due at 13:30 GMT is forecasted to show.
Meanwhile, the core CPI, which strips out food and energy, is seen rising 0.2%.
A weaker-than-expected figure could yield broad-based US dollar weakness, helping EUR/USD convincingly scale 1.1150. Note that the greenback was offered on Friday following the release of the dismal wage growth figures for December.
Technical levels
Author
Omkar Godbole
FXStreet Contributor
Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.
