EUR/USD Rebounds on US Inflation Surge, Eyes 1.1186 Resistance

30 apr 2023

The EUR/USD pair bounced back from its daily low and regained the 1.1000 level after US data was released. This occurred even though the US core PCE, which is the Federal Reserve's preferred gauge for inflation, showed a rise of 4.6% in March, which is the same as in February. The high inflation in the US is likely to warrant higher rates, thus driving the EUR/USD pair higher.

Furthermore, Wall Street showed solid gains during the mid-day of the New York session, and the US Department of Commerce also revealed that the annual figures for inflation slowed from 5.1% to 4.2%, even though the headline figure slowed to 0.1% MoM, less than the previous month's 0.3%.

Initially, the EUR/USD pair dipped to its daily low but then gained 80 pips before stabilizing at its current exchange rates. The technical analysis of the EUR/USD pair shows that it is close to the next strong resistance at 1.1186. This area will be our next target for a long position, and we will wait for the price's reaction before choosing a trade to take.