EUR/USD reaches for 1.0900, easing US CPI inflation pummels Greenback

EUR/USD climbs on broad-market Greenback selloff.
US CPI inflation eases further, sparking Fed rate cut hopes.
Bets for September rate cut firm up.

Joshua Gibson FXStreet

EUR/USD climbed on Wednesday in one of the pair’s single-best days of 2024, climbing towards 1.0900 and on pace to etch in a fourth consecutive gain week. Broad-market selling pressure deflated the US Dollar (USD) after risk appetite roared to the forefront after US Consumer Price Index (CPI) inflation eased more than investors expected.

US CPI inflation eased to 0.3% MoM, below median market forecasts of a steady 0.4% print and triggering a broad-market risk rally as sentiment pinned further into hope for an approaching rate cut from the Federal Reserve (Fed) in September. According to the CME’s FedWatch Tool, rate markets are pricing in over 70% odds of at least a quarter-point rate trim when the Fed meets in September.

European final Gross Domestic Product (GDP) figures broadly came in as expected for the first quarter, with Q1 GDP printing at 0.3% QoQ, which is in line with forecasts and the previous quarter’s growth. The rest of the week is strictly mid-tier data releases on both sides of the Atlantic, leaving markets to wistfully look ahead to whether or not the Fed will cut interest rates late in the third quarter.

EUR/USD technical outlook

EUR/USD is taking a bullish run at the 1.0900 handle as the pair extends a bullish bounce from the 200-hour Exponential Moving Average (EMA) from 1.0730. The 200-hour EMA is rising above 1.0780, but intraday bidding has dragged EUR/USD well above technical indicators, and the pair is up over 2.7% from April’s swing low near 1.0600.

Daily candles pierced the 200-day EMA at 1.0798 on Wednesday, but a descending pattern of lower highs threatens a clean extension with a near-term technical ceiling priced in from 1.0950.

EUR/USD hourly chart

EUR/USD daily chart

EUR/USD

Overview
Today last price	1.0889
Today Daily Change	0.0069
Today Daily Change %	0.64
Today daily open	1.082

Trends
Daily SMA20	1.0724
Daily SMA50	1.0787
Daily SMA100	1.0826
Daily SMA200	1.0791

Levels
Previous Daily High	1.0826
Previous Daily Low	1.0767
Previous Weekly High	1.0791
Previous Weekly Low	1.0724
Previous Monthly High	1.0885
Previous Monthly Low	1.0601
Daily Fibonacci 38.2%	1.0803
Daily Fibonacci 61.8%	1.079
Daily Pivot Point S1	1.0783
Daily Pivot Point S2	1.0746
Daily Pivot Point S3	1.0724
Daily Pivot Point R1	1.0841
Daily Pivot Point R2	1.0863
Daily Pivot Point R3	1.0899

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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