EUR/USD extends the bounce on EZ CPI, 1.1200 closer

The EUR/USD pair extends its bullish break in the European session, with the bulls aiming a test of 1.12 handle following the release of Eurozone final CPI numbers.

EUR/USD: Focus shifts to US dataflow

The spot is seen flirting with daily tops of 1.1183, after having found buyer once again near 1.1135 levels in early Asia, mainly in response to the extension of the corrective slide in the US dollar versus its main competitors.

Despite, positive momentum seen around the US yields, the greenback edges lower across the board on the back of profit-taking, after the two-day rebound backed by a hawkish Fed rate hike.

More so, the Euro found fresh boost from the in-line with expectations Eurozone final CPI data, which arrived at -0.1% m/m in May. The Eurozone inflation data provides a positive input to the prices, especially after the ECB downgraded its inflation forecasts last week.

Meanwhile, EUR/USD remains little affected by a better sentiment seen on the European indices, as the upcoming US macro releases remain in focus for fresh trading impetus.

EUR/USD Technical Levels

Slobodan Drvenica at Windsor Brokers Ltd. explained: “Fresh bearish pressure is coming from 10/20SMA bear cross which is forming at 1.1212, with next key supports at 1.1121/09 (Fibo 38.2% of 1.0839/1.1295 upleg/30 May low) being in focus.”

“Sustained break below 1.1121/09 pivots would open way for extended correction towards initial target at 1.1075 (daily Kijun-sen) and 1.1020/00 (Fibo 61.8% of 1.0839/1.1295 upleg/psychological support) in extension. Corrective rally on oversold studies should stay capped under 1.1200 handle to keep fresh near-term bears intact,” Slobodan added.