The Euro (EUR) inched higher against the US Dollar (USD) on Friday, increasing the price of EURUSD to more than 1.1150 following some key economic events. The technical bias has however turned bullish because of a higher high in the recent upside rally.
As of this writing, the pair is being traded near 1.1172. A hurdle may be noted around 1.1200 (a short-term horizontal resistance area as well as psychological number) ahead of 1.1296 (the high of the recent upside wave) and then 1.1400 (the psychological number).
On the downside, a support can be noted around 1.1132 (the low of yesterday) ahead of 1.0839 (the low of the last major downside move) and then 1.0800 (the confluence of horizontal support as well as psychological number) as demonstrated in the given above chart. The technical bias shall remain bullish as long as the 1.0839 support area is intact.
The final Euro-zone CPI inflation reading was confirmed at 1.4% for May which was unchanged from the flash reading and also in line with consensus forecasts. The annual rate declined from 1.9% the previous month as prices fell 0.1% on the month, but still represented a sizeable increase from the rate of -0.1% recorded in May 2016. The core rate was also unchanged from the flash reading at 0.9% compared with a rate of 1.2% in April and 0.8% in May 2016.
Considering the overall technical and fundamental outlook, selling the pair around current levels may be a good strategy in short to medium term.