EUR / USD Get Weak Dollar Momentum
The EUR / USD currency pair ended higher on Wednesday for a third straight day. EUR / USD is currently trading near 1.2460 ahead of European markets, flat in Asian trading session with Chinese market closed for Chinese Spring Festival.
The rise in inflation, shown by better-than-expected US CPI data yesterday, is clearly not good for the US dollar. Because inflation began to become an obstacle to the US dollar and gave a boost to the euro. The single currency pair EUR / USD continues to accelerate to gain gains this year as long as the balance between risk aversion on the market and bearish dollar fundamentals remains intact.
Based on the hourly chart, EUR / USD is moving sideways below near resistance1.2463 level since Asian session today. There is a chance for a temporary correction if this level holds. Short term correction targets are at 1.2414 and 1.2383. While the resistance level as the target breakout is at 1.2537.
Source of analysis: ForexSignal88
Image source: MT4 Platform