EUR/USD stalls 5-day rally, eases to 1.1300 ahead of CPI

The EUR/USD pair took a breather in its upsurge during the Asian session this Thursday, deflating from fresh post-Brexit tops reached near 1.1330 region.

EUR/USD flirting with 1.13 barrier

Currently, EUR/USD trades +0.13% higher at 1.1304, having recovered from session lows struck at 1.1286 earlier on the day. The main currency pair faced strong resistance once again near 1.1330 region and drifted lower from there, largely driven by a tepid bounce staged by the greenback across the board, following yesterday’s slump backed by slightly dovish Fed minutes.

The FOMC minutes revealed that the Fed members remain divided on a rate hike outlook for this year, pouring cold water on increased speculation surrounding a Sept Fed rate rise. The USD index recovers to 94.60 levels, down only -0.10% on the day.

Moreover, persistent risk-off sentiment amid negative stocks and oil prices also keeps the demand for the funding currency (euro) intact. Meanwhile, markets now eagerly await the Eurozone final CPI figures and ECB monetary policy accounts for the next push higher, ahead of the US macro data due later in the NA session.

EUR/USD Technical Levels               

In terms of technicals, the pair finds the immediate resistance 1.1328 (post-Brexit high). A break beyond the last, doors will open for a test of 1.1350 (psychological levels). On the flip side, the immediate support is placed at 1.1286 (daily low) below which 1.1244 (5-DMA) could be tested.