FxWirePro: EUR/USD recovers from low of 1.8228, markets eye US CPI data

• EURUSD is showing a minor recovery after hitting new 2018 low of 1.8228 ahead of US CPI data. With most of European markets are on holiday’s today leaving calendar empty. Market eyes US CPI data for further direction. US headline inflation is expected to show a minor jump to 2.5 y/y from 2.4% y /y Mar and Core CPI is expected to nudged higher from 2.1% yoy Mar to 2.2%.  Any good jump in inflation will increase chance of more than three rate hike this year. US 10 year bond yield has once again crossed 3% and markets has shrugged of US decision to leave Iran. It is currently trading around 1.18897.
   
• US dollar index has declined sharply after hitting high of 93.42 yesterday. Any convincing close below 92.50 will take the index till 91.95 (200 –day MA). Market eyes US CPI data which is to be released for further direction.
   
• On the lower side, near term support stands at 1.1800 and any break below targets 1.17120 (38.2% fibo)/1.1600.
   
• The near term resistance is around 1.1900 and any break above will take the pair to next level till 1.1925/1.1970/1.200. The pair should close above 1.2020 for further upside.

It is good to sell on rallies around 1.1925-30 with SL around 1.2000 for the TP of 1.1800/1.1715.