EUR/USD gained sharply after dismal US CPI. It hit an intraday high of 1.12283 and currently trading around 1.11882.
The U.S. Consumer Price Index (CPI) for March 2025 declined 0.1%, reversing the increase of 0.2% in February, while the core CPI rose by 0.1%, falling short of the February rise as well. The energy index lost 2.4% through falling gasoline prices, though the prices of electricity and natural gas rose. The food index concurrently rose by 0.4%, influencing food away from home and food at home. The information reflects easing inflation pressures, lowering the inflation rate on an annual basis to 2.4% and in line with market forecasts, which can influence future economic projections and monetary policy.
Technical Analysis of EUR/USD
The pair is holding above short and long-term moving averages in the 4-hour chart. Near-term resistance is seen at 1.12285; a break above this may push the pair to targets of 1.1275. Major bullish momentum is likely only if prices can break above the 1.1275 target of 1.1480. On the downside, support is seen at 1.11500 any violation below will drag the pair to 1.11000/1.10840/1.1000.
Market Indicators and Trading Strategy
Commodity Channel Index (CCI)- Bullish
Average Directional Movement Index (ADX) - Bullish
It is good to buy on dips around 1.1150 with a stop-loss at 1.100 for a target price of 1.1275.
