EUR/USD moves to daily highs near 1.1990, EMU CPI eyed

The pair recovers ground lost and approaches 1.20.
The greenback appears offered following the FOMC meeting.
Advanced inflation figures in Euroland coming up next.

Pablo Piovano FXStreet

The now offered bias around the greenback is lifting EUR/USD to the area of session highs near 1.1990.

EUR/USD focused on CPI

After bottoming out in fresh cycle lows in the 1.1940/35 band on Wednesday, spot managed to pick up some buying interest and is now testing once again the proximity of the psychological handle at 1.2000 the figure, where also converges the key 200-day sma.

The pair is up for the first time after three consecutive daily pullbacks as market participants continue to adjust to yesterday’s FOMC meeting, where the Federal Reserve left the overnight rates unchanged at 1.50%-1.75%, matching the broad consensus.

It is worth recalling that the Committee now sees inflation close to the Fed’s 2% target and expects some ‘symmetry’ around it, allowing for some overshooting at the same time. The FOMC also noted that gains in jobs are strong and the risks to economic growth are ‘roughly balanced’. In addition, the Committee reiterated that the economy warrants further gradual rate hikes.

In the data space, advanced inflation figures in the euro area for the month of April will be the salient event during the European morning. Across the pond, Initial Claims, Trade Balance, Durable Goods Orders and the ISM Non-manufacturing are all due later in the NA session.

EUR/USD levels to watch

At the moment, the pair is up 0.30% at 1.1987 and a break above 1.2033 (high May 2) would target 1.2113 (10-day sma) en route to 1.2210 (high Apr.26). On the other hand, the immediate support lines up at 1.1938 (low May 2) seconded by 1.1916 (2018 low Jan.19) and finally 1.1718 (monthly low Dec.12 2017).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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