EUR/USD bulls eyeing a move beyond 1.20 post-German CPI

Haresh Menghani FXStreet

• Flash German CPI betters expectations.
• Bulls now wait for a break above 1.20 mark.

The EUR/USD pair held on its strong gains through the early NA session, with bulls now eyeing to break through the key 1.20 psychological mark post-German inflation figures.

The flash German CPI print bettered expectations and came in to show a modest pickup in inflation. The monthly rate edged higher 0.6% m-o-m, while yearly rate eased to 1.7% and harmonized CPI stood at 0.8% in December.

Against the backdrop of broad-based greenback weakness, with the key US Dollar Index struggling near 3-month lows, today's better-than-expected CPI print remained supportive of the pair's strong bid tone.

It would now be interesting to see if the ongoing bullish momentum could get extended further beyond the 1.20 handle amid pre-holiday thin trading conditions and absent macroeconomic releases from the US.

Nevertheless, the pair remains on track to end the year on a high note and seems all set for its highest weekly close since early September, nearly 4-months.

Technical levels to watch

Sustained momentum beyond the 1.20 mark is likely to get extended towards 1.2030 supply zone, above which the pair is likely to dart towards yearly tops in the vicinity of the 1.2100 handle.

On the flip side, any profit-taking slide now seems to find immediate support near the 1.1965-60 region, which if broken might trigger a corrective slide back towards the 1.1900-1.1890 support.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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