EUR/USD extends higher on upbeat CPI, nears 1.1150

The EUR/USD pair’s recovery above 200-DMA support gained further traction after the common currency found fresh impetus from better-than expected Eurozone CPI figures.

EUR/USD supported above 5-DMA at 1.1078

Currently, EUR/USD now trades 0.11% at fresh session highs of 1.1138, bouncing-off a dip to 1.1110 in the last hour. The main currency pair wipes-out losses and jumps back on the bid above the crucial 200-DMA support as poor risk sentiment boosts the funding currency status of the EUR.

Moreover, the latest leg higher in the major is mainly driven by improving consumer prices in the 19-nation bloc, lifting the region finally out of the deflationary pressures.  The Eurozone’s inflation for June improved slightly to 0.1% y/y, up from -0.1% scored in May. The core figures also ticked higher to 0.9%, with both outcomes topping expectations.

Next of note for the EUR/USD pair remains the ECB monetary policy meeting accounts that will be published later this session. While the NA session sees the release of the usual jobless claims, along with Chicago PMI for June. While Fed Bullard’s speech will also remain in the spotlight for fresh cues on the Brexit-vote and therefore on its impact on the US economy.

EUR/USD Technical Levels             

In terms of technicals, the pair finds the immediate resistance 1.1150 (psychological levels). A break beyond the last, doors will open for a test of 1.1175 (10-DMA). On the flip side, the immediate support is placed at 1.1100 (200-DMA) below which at 1.1078 (5-DMA) could be tested.