Fundamental Analysis

• U.S. Consumer Price Index came in below expectations, and EURUSD remains range-bound.
• EURUSD is currently testing a trendline, and a breakout is worth watching.

EURUSD Technical Analysis

On the daily chart, EURUSD has rebounded off the 52-day moving average. The pair had been trading below 1.12 USD for a while amid continued USD buying pressure. However, the 52-day MA served as support, and a harami candlestick pattern has formed, which can sometimes signal a potential reversal.

The 1.12 USD level is considered the immediate resistance. If EURUSD breaks above 1.12 USD, it could rise toward 1.128 USD.

Although U.S. CPI came in weaker than expected, many market participants believe the impact of recent tariff changes will not be felt until June. If inflation rises sharply, it could trigger significant market movement.

Intraday Trading Strategy (1-Hour Chart)

Looking at the 1-hour chart, EURUSD is currently testing a trendline that previously acted as resistance. This trendline overlaps with the psychological round number of 1.12 USD, forming a strong resistance zone.

Intraday Strategy:

• Sell near the trendline
• Stop loss: 1.1225 USD
• Take profit: 1.1140 USD
  

Support & Resistance Levels to Watch:

• 1.12 USD – Psychological round number
  

Market Sentiment

EURUSD

• Sell: 67%,Buy: 33%
  

Key Economic Events Today

*Trading advice in this article is not provided by Milton Markets, but by Shu Fujiyasu Jr., a certified technical analyst.