The weak US Economic news data has pushed the EURUSD pair reach up to 1.1290 on Thursday, but we did not observe any further movements then and the pair trapped around 1.1280, the 61.8% Fibo level of its latest bullish rally. Germany’s August inflation , which remained at 0.0% as expected. Yearly basis, the result was also the same as expectations and previous month readings, by registering 0.2%, with a mute effect over the common currency before the day is over.
Anyway, for those who like and rely more on technical analysis, the H4 chart shows that, despite the price touches its weekly highs, and the upward potential remains limited. Technical indicators have lost their bullish strength whilst the price is unable to break above the strong Fibonacci resistance.
The pair should touches 1.1330, highest monthly price, the immediate resistance to follow, with a break and confirm above it favoring a rally up to 1.1380, the 50% retracement of the same rally. The 1.1220 price zone is the very next support to follow, with a break and confirm below it is pointing to a quick slide towards the 1.1160 price area.