EUR/USD: Bounce stalls near 1.1140, eyes US inflation data
- EUR/USD is struggling to post sustainable gains above 1.1140.
- An above-forecast China data failed to put a bid under the EUR in Asia.
- The dollar may run into offers on weak US CPI.
EUR/USD is flashing green, but the momentum of the bullish move from 1.1085 looks to have run out of steam in the 10-pip range of 1.1140-1.1150.
The hourly chart shows the pair has faced multiple rejections in the 1.1140-1.1150 range in the last 12 hours.
China's trade data for December released in Asia showed a big beat on both imports and exports – a sign of strengthening domestic and global demand conditions. Even so, the EUR failed to pick up a bid.
Focus on US data
The cost of living in the US, as represented by the consumer price index (CPI), rose 0.3% month-on-month in December, the official data due at 13:30 GMT is forecasted to show.
Meanwhile, the core CPI, which strips out food and energy, is seen rising 0.2%.
A weaker-than-expected figure could yield broad-based US dollar weakness, helping EUR/USD convincingly scale 1.1150. Note that the greenback was offered on Friday following the release of the dismal wage growth figures for December.
Technical levels