EUR/USD lost its shine after upbeat US CPI data.It hits a low of 1.02820 and currently trading around 1.03235.
In January 2025, the Consumer Price Index (CPI) grew by 0.5 per cent after climbing 0.4% in December. Overall CPI jumped 3.0% compared to last year. The core CPI saw an increase of 3.3% in both items, except for food and energy. It mainly resulted from increases of about 0.4% in the costs of shelter and 1.1% in energy prices. Both are significant factors. As a result, overall food prices rose by 0.4%.
Technical Analysis of EUR/USD
The pair is holding below short and below the long-term moving average in the 4-hour chart. Near-term resistance is seen at 1.0400; a break above this may push the pair to targets of 1.04700/1.0500/1.0535/1.0575, 1.0600/1.0660. Major bullish momentum is likely only if prices can break above 1.0660, where levels of 1.0700, 1.0760, and 1.0800 await. On the downside, support is seen at 1.0300 any violation below will drag the pair to 1.0300/1.0220.
Market Indicators and Trading Strategy
Commodity Channel Index (CCI)- Bearish
Average Directional Movement Index (ADX) - Neutral. It is good to sell on rallies around 1.0365 with a stop-loss at 1.0410 for a target price of 1.0220.


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