The euro was posting modest gains on Wednesday, in an attempt to maintain the momentum. On the economic front, the monthly inflation report from the US was the key mover.
Headline inflation in the United States rose by 2.1% on the year. On a monthly basis, inflation grew by 0.3%. However, data suggests that the pace of inflation growth continues to remain tame. Data from the eurozone was sparse.
EUR/USD Testing Upper Resistance
The euro rose to session highs near 1.1100. However, price action is likely to remain within the range of 1.1100 and 1.1072 ahead of today’s ECB meeting.
A breakout from this range will probably set the stage for the near term direction in prices. To the downside, EURUSD is at risk of sliding to 1.1000 support. To the upside, above 1.1100 resistance, the 1.1131 level remains within reach.
