EUR/USD – Bulls maintain control, targeting key resistance levels ahead of German CPI data release

The Euro remains strong as diminishing expectations of an ECB rate cut shift market focus to tomorrow’s German inflation data release (annualized CPI expected to rise in May).

The bullish move from the higher low at 1.0805, where the 100DMA halted the recent pullback, extends into its third consecutive day, pressuring key barriers at 1.0891/95 (76.4% Fibonacci retracement of 1.0981/1.0601 / May 16 high). Breaking these levels would complete the corrective phase and pave the way towards key targets at 1.0981/1.1000 (March 8 / January 11 highs / psychological level).

Strong positive momentum, a bullish setup of moving averages with multiple bull-crosses on the daily chart, and the completion of a bull-flag pattern support the positive near-term outlook.

The rising 10DMA (1.0854) offers immediate support, protecting the broken 61.8% Fibonacci level (1.0836) and key supports at 1.0811/08 (converging 100/20DMAs, which are on track for another bull cross), thereby maintaining the larger bullish bias.

Res: 1.0895; 1.0942; 1.0981; 1.1000
Sup: 1.0854; 1.0836; 1.0808; 1.0785