FxWirePro: EUR/USD trades higher on slightly weaker than expected US CPI data, good to buy on dips

EURUSD has pared most of its loss made in this week and gained more than 170 pips from the low of 1.14322. US CPI data released yesterday was slightly weaker thane expected with headline CPI came at 0.1% slightly less compared to forecast of 0.2% and Y-o-y CPI is at 2.3% slightly less from 2.7%.The slight weakness in US CPI along with Donald’s Trump comment on Fed rate hike is supporting Euro. US 10 year yield has shown a minor recovery after more than 3.5% fall. It is trading around 3.17% and 2 year yield jumped more than 2% from low of 2.83%. The rising 10 year Italy bond yield due to high debt and political uncertainty is expected to put cap on Euro upside.

On the higher side, near term strong resistance is around 1.1620 (20- day MA) and any break above targets 1.1660/1.1720.The pair should break above 1.1800 for further bullishness continuation.

The near term minor support is around 1.1500 and any violation below targets 1.1460/1.1430. Any convincing break below 1.1430 confirms major bearishness.

It is good to buy on dips around 1.1550 with SL 1.1500 for the TP of 1.1700