EUR/USD Forex Signal Today 11/06: US Inflation Data (Chart)

(MENAFN- Daily Forex) Bullish view

• Buy the EUR/USD pair and set a take-profit at 1.1575.
• Add a stop-loss at 1.1350.
• Timeline: 1-2 days.

Bearish view

• Sell the EUR/USD pair and set a take-profit at 1.1350.
• Add a stop-loss at 1.1575.

The EUR/USD exchange rate was flat on Wednesday as traders reacted to statements by several European Central Bank (ECB) officials and the upcoming US inflation data. It was trading at 1.1425, a few points below this month's high of 1495 inflation data and ECB statement

The EUR/USD exchange rate wavered after a ECB official urged the bank to wait at least until September to cut interest rates again. In a statement, Boris Vujic, the head of Croatia's central bank said that the bank was in a good position after delivering eight interest rate cuts.

He believes that it should wait for more data before it decides whether to cut rates again. It has already slashed them from 4% last year to 2% today and even Christine Lagard, the bank's president, has signaled that the cuts are nearing the end.

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ECB interest rate cuts have widened the gap with the United States as the Fed has not changed them this year. It has maintained them intact between 4.25% and 4.50% and hinted that it would maintain them unchanged because inflation has remained above 2%.

The next key catalyst for the EUR/USD pair will be the US consumer inflation data. Economists expect the data to show that the headline annual CPI rose from 2.3% in April to 2.5% in May. Similarly, core inflation, which excludes volatile items, rose from 2.8% to 2.9%.

A stronger-than-expected inflation data will reinforce the Fed's view and point to higher rates for longer. A decline in inflation will push the bank to consider a cut in the July or September meeting.

EURUSD Chart by TradingViewEUR/USD technical analysis

The EUR/USD pair has gained momentum this year as some investors moved to the euro because of its stability compared to the US dollar. It was trading at 1.1430 on Wednesday morning, a few points below the month-to-date high of 1.1495.

The 12-hour chart shows that the pair is supported by the 50-period and 100-period moving averages, a sign that bulls are in control. It also remains above the key support at 1.1213, the highest swing in August and September last year.

The MACD indicator remains above the zero line. Therefore, the pair will likely rise as bulls target the resistance level at 1.1573, its highest point on April 21. A move above that level will point to more gains, potentially to 1.1600.

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