EUR/USD inches higher to 100-DMA on US macro data

The EUR/USD pair came to life after the release of dismal macro data from the United States and moved higher to test the 100-DMA at 1.0630. At the moment, the pair is up 0.12% at 1.0629.

The consumer-price index, with a decrease of 0.3%, fell for the first time in more than a year in March, following a 0.1% advance in February. The official report from the U.S. Bureau of Labor Statistics suggested that declining costs for gasoline and mobile phone services have been the main reason for the drop seen in March as the energy index declined 3.2% for the same period while the gasoline index fell 6.2 percent%.

• US: CPI falls 0.3% in March; index excluding food and energy falls 0.1%

Other data from the U.S. showed that the retail sales contracted 0.2% in March and February number was revised lower to -0.3% from 0.1%.

• US: March advance monthly retail sales were $470.8 billion, 0.2% lower from February

The recent upsurge is struggling to gain momentum amid holiday-thinned market volumes. The next catalyst could be the Treasury FX report, which is expected to be released today. However, there is no scheduled time for it.

Technical outlook

Following the initial reaction, the pair is calm again, facing the first resistance at 1.0630 (100-DMA) before 1.0690 (20-DMA) and 1.0810 (200-DMA). To the downside, supports could be seen at 1.0570 (Apr. 10 low), 1.0455 (Jan. 11 low) and finally 1.0390 (Jan. 4 low).