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EUR/USD moves higher toward 1.1600 after softer US inflation
The pair rose 0.4% to 1.1466 after US inflation came in softer than expected, reducing expectations of a more hawkish Federal Reserve.
EUR/USD rose about 0.4% on Wednesday, trading around 1.1466, after US inflation data was softer than expected. FXStreet linked the move to pressure on the US dollar and expectations for a less hawkish Federal Reserve.
In the near term, technical factors are drawing attention as well. The RSI suggests momentum has turned bullish, with traders watching the psychological 1.1500 level first.
Above that, key reference points include the 50-day simple moving average near 1.1542 and the 100-day SMA around 1.1592, ahead of the 1.1600 area. If the pair weakens instead, FXStreet highlighted support levels including 1.1400, then 1.1377, followed by 1.1324 and 1.1300.
The broader backdrop in the article points to a monthly decline in the CPI of 0.4%, with the annual rate dropping to 3.5% from 4.2%. Core prices were described as flat, with the report framed as a reversal after a three-month acceleration run.
Latest closeEUR/USD 1.147 ▲0.8%