• EUR/USD eased slightly on Wednesday after Eurozone inflation came in softer than expected, reinforcing expectations that the European Central Bank may adopt a less aggressive stance at its upcoming policy meeting.
• Annual inflation eased to 2.8% in June, below the 3.0% market forecast, reducing the urgency for another ECB interest rate hike on July 23..
• Although June inflation remained above the ECB's 2% target, easing oil prices on hopes of a peace deal have boosted expectations that inflationary pressures will continue to moderate, limiting the broader impact of the recent energy price surge.
• Technical signals are strongly bullish as RSI is at 34, daily momentum studies 5, 9 and 10 DMAs are trending down
• Immediate resistance is located at 1.1432 ( June 30th high), any close above will push the pair towards 1.1497 (38.2% fib)
• Strong support is seen at 1.1328(23.6% fib) and break below could take the pair towards 1.1276(Lower BB).
Recommendation: Good to sell around 1.1390, with stop loss of 1.1450 and target price of 1.1300
