The EUR/USD price is bouncing back after the slight decline yesterday following the weak US consumer price index (CPI) data. The EURUSD is trading at 1.2125, which is slightly below this week’s high of 1.2142.
EUR/USD news: The main driver of the pair recently has been the weak US dollar. The currency has dropped substantially in the past few days after the US released relatively weak jobs numbers. Yesterday, the statistics agency revealed that the country’s inflation was below estimates. As such, there are calls to offer more fiscal and monetary stimulus to the economy.
Today, the EUR/USD price will react to the EU economic forecasts by the European Commission that will come out at 10:00 GMT. It will also react mildly to the US jobless claims numbers.
EUR/USD technical outlook
The EUR/USD pair has been on a steady rise since last Friday when the US published the nonfarm payroll numbers. On the four-hour chart, it is slightly below the important resistance of 1.2190, which was the highest level on January 22. The 25-day and 15-day WMAs have also made a bullish crossover. Therefore, in my view, the pair will continue rising as bulls target the resistance at 1.2190. However, a decline below the support at 1.2058 will invalidate this trend.