EUR/USD is extending its advance to test 1.0800 after softer US CPI inflation data weighed on the Fed rate hike expectations and fuelled a fresh US Dollar sell-off. Earlier in the day, the Euro area showed that the real GDP expanded at an annual rate of 0.1% in Q3, matching the flash estimate.
The daily chart for the EUR/USD pair shows a nice upward momentum, although with the pair stalling its rally around a mildly bearish 100 Simple Moving Average (SMA). The 200 SMA develops a few pips above the shorter one, while the 20 SMA gains bullish traction well below the current level.
You might like this: GBP/USD Holds Above 1.2200 after UK GDP
At the same time, technical indicators aim north almost vertically and at fresh multi-month highs, in line with a continued advance.
The bullish case is even stronger in the near term, according to the 4-hour chart. The EUR/USD soared after repeatedly meeting buyers around a flat 20 SMA, while the longer ones headed north below it.
Finally, technical indicators maintain upward slopes within overbought readings without signs of bullish exhaustion.
Support levels: 1.0755 1.0720 1.0685
Resistance levels: 1.0800 1.0840 1.0890