EUR/USD to extend its advance as US inflation misses

The EUR/USD pair stands near a daily high of 1.2143 as the bullish momentum accelerates following the release of lukewarm US data, Valeria Bednarik, Chief Analyst at FXStreet, reports. 

Key quotes

“Germany published January inflation figures, which confirmed the preliminary estimates. The annual CPI printed at 1.6%, while in the month, it was up by 1.4%. The US January inflation data came in as previously estimated, but below the expected upward review. The annual CPI came in at 1.4%, while the core reading suffered a downward revision to 0%.”

“From a technical point of view, the pair is poised to extend its advance in the near-term. The 4-hour chart shows that it keeps running above its 20 and 100 SMA, with the shorter one accelerating north. Technical indicators turned higher in overbought readings, reflecting increasing buying interest.”