EUR/USD Technical Analysis

EUR/USD should bounce up
Good US CPI won't change the main trend
Look for the 88.6 bounce
Retest of the previous highs is possible

H4 CHART EUR/USD

Bounce zone
Swing high
Buyers zone
The final target

The EUR/USD started to drop after the better than expected US CPI. Consumer prices account for a majority of overall inflation. Inflation is important to currency valuation because rising prices lead the central bank to raise interest rates out of respect for their inflation containment mandate. At this point the price is dropping. 1.1290-1.1315 is the possible bounce point. Look for the bounce there for a possible 1.1485 retest.