EURUSD holds firm tone and may accelerate higher on US inflation data

EURUSD is establishing above key levels at 1.1000/12 (psychological / June 22 peak), lifted by renewed risk appetite, as the dollar was sold across the board on signals that Fed’s tightening cycle is nearing its end.

The single currency is rallying for the fifth consecutive day, in a bull-leg from a higher base at 1.0833, focusing initial barriers at 1.1054/83 (Fibo projections 1.1054/1.1080), ahead of key resistance at 1.1095 (2023 high, posted on Apr 26), violation of which would expose targets at 1.1181 (200WMA) and 1.1223 (Fibo 61.8% of 1.2266/0.9535).

Bullish daily studies support the action, with price adjustments ideally to hold above 1.10 level (reverted to support) and keep bulls intact.

All eyes are on today’s US inflation report (June y/y 3.1% f/c vs May 4.0%) with further signals of inflation continuing to slide towards 2% target, to confirm idea that interest rates have peaked and add pressure on dollar.

1.1036; 1.1054; 1.1080; 1.1095
Sup: 1.1000; 1.0986; 1.0935; 1.0923