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EUR/USD holds near 1.1435-1.1440 as USD weakens after cooling inflation
EUR/USD is trading near 1.1435-1.1440, with resistance near the 23.6% Fibonacci level and the 4-hour 200-period SMA around 1.1490, while a break below 1.1323 would strengthen the broader bearish view.
EUR/USD is hovering in the 1.1435 to 1.1440 area on Wednesday’s Asian session, after a prior pullback from the 1.1460 to 1.1470 resistance band, according to FXStreet.
FXStreet attributes the modest EUR/USD support to weaker-than-expected US consumer inflation data released Tuesday, which has led traders to scale back expectations for additional Federal Reserve rate hikes, weighing on the US dollar.
Even so, FXStreet notes that inflation risks tied to elevated crude oil prices, plus Federal Reserve Chair Kevin Warsh’s price stability stance, and rising US-Iran tensions may limit deeper USD losses and keep EUR/USD from breaking down further.
On the technical side, FXStreet says the pair is still struggling to build acceptance above the 23.6% Fibonacci retracement level of the April-June decline, with momentum indicators suggesting scope for corrective upside, while major downside support is centered near the Fibonacci anchor close to 1.1323.
Latest closeWTI crude $79.90 ▲2.2%|EUR/USD 1.142 ▲0.2%