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EUR/USD: Bounce stalls near 1.1140, eyes US inflation data

  • EUR/USD is struggling to post sustainable gains above 1.1140. 
  • An above-forecast China data failed to put a bid under the EUR in Asia. 
  • The dollar may run into offers on weak US CPI. 

EUR/USD is flashing green, but the momentum of the bullish move from 1.1085 looks to have run out of steam in the 10-pip range of 1.1140-1.1150. 

The hourly chart shows the pair has faced multiple rejections in the 1.1140-1.1150 range in the last 12 hours. 

China's trade data for December released in Asia showed a big beat on both imports and exports – a sign of strengthening domestic and global demand conditions. Even so, the EUR failed to pick up a bid. 

Focus on US data

The cost of living in the US, as represented by the consumer price index (CPI), rose 0.3% month-on-month in December, the official data due at 13:30 GMT is forecasted to show. 

Meanwhile, the core CPI, which strips out food and energy, is seen rising 0.2%. 

A weaker-than-expected figure could yield broad-based US dollar weakness, helping EUR/USD convincingly scale 1.1150. Note that the greenback was offered on Friday following the release of the dismal wage growth figures for December. 

Technical levels


 

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