Eurusd Crosses Resistance After Cpi

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Eurusd Crosses Resistance After Cpi

Eur/Usd Crosses 1.800 As Us Cpi Declines

The release of the US CPI for May has lifted the EUR/USD higher, as it now trades above the 1.800 handle. Through the process, the EUR/USD has now turned the 1.0800 from resistance into a solid support.

The US CPI has shown a deflation trend, which is good news for those who are eyeing a rate cut from the US Fed Reserve. That's a key reason why the EUR is now playing on the front foot against the USD.

Eur/Usd Trades Above 100 And 200 Sma

The technical chart (D1) of EUR/USD shows that it has successfully closed above the 100 and 200 SMA. At the same time, the 20 SMA is acting as a dynamic resistance and is seen near 1.0840 - 1.0850.

Meanwhile, all the major technical indicators are also showing a resurgence of bullish momentum. However, they are struggling a little bit to cross the midline and officially enter into bullish territory. That's why unless the technical indicators cross their midlines in a bullish manner, another leg higher will have to wait.

If we move down to the H4 chart of EUR/USD, a bullish trend has formed in the short-term. All of the technical indicators also trade above the midlines. This is a sign that the H4 has turned bullish while the D1 chart of the EUR/USD is still lagging behind.

On the H4 chart, the EUR/USD has already crossed the short-term and long-term SMAs of 20 and 200. Overall, it seems that the CPI is now done, and investors are now eyeing the upcoming Fed meeting.

The EUR/USD's support levels are seen near 1.0800 and then the 1.0790. If the USD turns more bullish, it can also send the EUR/USD pair towards 1.0750, and then the 1.0710 - 1.0700 area.

On the way up, the next resistance levels for the EUR/USD include the 1.0840 and then the 1.0885. A successful break of these levels means the next stop for the EUR bulls will be 1.0900 - 1.0920.

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