EUR/USD Gains as Softer US Inflation Supports Euro Strength

US core PCE came in line with expectations, while today’s core CPI, CPI, and CPI y/y all came lower than forecast. This weaker US inflation data is supporting euro strength, along with improving energy security conditions in Europe.

Technically, the 1.1740 area has turned into immediate resistance, which was previously a swing low. A pullback from this level could create buying opportunities targeting the 1.1800 area.

On the downside, 1.1713 is the immediate support, while 1.1675 is the key support zone near the 200-day and 50-day moving averages. Traders should stay cautious ahead of upcoming data releases.

EUR/USD Daily Chart