• EUR/USD retreated from early highs on Monday, slipping toward 1.9280 level as investors digested inflation data from Germany and Italy.
• German inflation eased in June, according to preliminary data from the federal statistics office on Monday, defying expectations for a slight uptick in price pressures in Europe’s largest economy.
• German inflation declined to 2.0% year-on-year in June, falling short of analysts' expectations for a rise to 2.2% in EU-harmonised terms.
• Meanwhile, Italy's the Harmonized Index of Consumer Prices (HICP) rose 1.7% year-over-year in June, while posting a monthly gain of 0.2%
• Technical indicators remain firmly bullish, with the RSI at 65 and the 5,11 and 21‑day momentum moving averages all trending higher.
• Immediate resistance is located at 1.9386(Daily high), any close above will push the pair towards 1.9469(23.6% fib).
• Immediate support is seen at 1.9349(38.2% fib) and break below could take the pair towards 1.9253(50% fib).
Recommendation: Good to buy on dips around 1.9260, with stop loss of 1.9150 and target price of 1.9400
