Euro/USD Price Analysis: Euro/USD Trading Above 1.1000 Ahead of US Inflation Data

• Market risk appetite is increasing, with EUR/USD finding some relief above key support level of 1.1000.

• US overall inflation is expected to slow down to 4.4%, while core inflation is projected to rise to 5.8%.

• ECB's Lagarde opens the door for more than one interest rate hike.

The EUR/USD remains above the psychological support level of 1.1000 in the Asian market, while the US Dollar Index (DXY) hovers fragilely above 101.20, indicating a potential further upside in the EUR/USD.

Following the release of a moderate US non-farm payrolls (NFP) report, the market's focus has shifted to the US Consumer Price Index (CPI) data to be released on Wednesday. The overall US inflation is expected to ease to 4.4%, while the core inflation, excluding oil and food prices, is expected to rise to 5.8%.

Last week, the European Central Bank (ECB) announced a 25 basis point rate hike, abandoning the 50 basis point rate hike constraint previously imposed due to the sharp decline in European bank lending. However, ECB President Lagarde has opened the door to more rate hikes.

The EUR/USD showed a downward trend after failing to break the April 26 high of 1.1095. The pair has formed a double-top pattern, which will trigger a reversal only if it breaks below the adjacent support of 1.0942, the low of May 2. The 20-period Exponential Moving Average (EMA) at 1.1020 is currently acting as resistance.

In addition, the Relative Strength Index (14) has entered the range of 40.00-60.00. If the RSI falls below this range, the EUR/USD may experience further downside.

Looking ahead, if the EUR/USD falls below the May 2 low of 1.0942, it may face pressure and approach the April 12 low of 1.0915 and the April 10 low of 1.0837.

On the upside, if the EUR/USD breaks above the April 26 high of 1.1095, it may rally towards the 13-month high of 1.1185, followed by psychological resistance at 1.1200.

Overview:

Latest Price: 1.1022

Today's Intraday Change: 0.0002

Today's Intraday Change %: 0.02

Today's Opening Price: 1.102

Trend:

20-day Moving Average: 1.0989

50-day Moving Average: 1.0839

100-day Moving Average: 1.0782

200-day Moving Average: 1.0434

Levels:

Previous Day High: 1.1048

Previous Day Low: 1.0967

Last Week's High: 1.1092

Last Week's Low: 1.0942

Last Month's High: 1.1095

Last Month's Low: 1.0788

Daily Fibonacci Retracement Level 38.2%: 1.1017

Daily Fibonacci Retracement Level 61.8%: 1.0998

Daily Pivot Support Level 1: 1.0975

Daily Pivot Support Level 2: 1.0931

Daily Pivot Support Level 3: 1.0894

Daily Pivot Resistance Level 1: 1.1056

Daily Pivot Resistance Level 2: 1.1093

Daily Pivot Resistance Level 3: 1.1137