EUR/USD to see the June high at 1.1422 amid greenback weakness

The German ZEW survey unexpectedly showed dented economic sentiment in Europe while US core inflation held at 1.2% in June, beating the market’s expectations. EUR/USD hovers near daily highs as heads towards June high at 1.1422, FXStreet’s Chief Analyst Valeria Bednarik briefs.

Key quotes

“EUR/USD is up despite a dismal German ZEW survey, which showed that Economic Sentiment in the country eased to 59.3 in July, below the previous 63.4 and the expected 60. German inflation, in the meantime, held steady at 0.9% YoY in June. The US has just published its June inflation, up in the month by 0.2%. Yearly inflation met the market’s forecast with 0.6%, although core CPI resulted in 1.2%, better than the 1.1% expected.”

“The 4-hour chart shows a strong upward Momentum as the RSI indicator also accelerates north, currently at 64. Moving averages in the mentioned time-frame, however, lack enough directional strength to confirm a new leg north. Nevertheless, and given the broad dollar’s weakness, further gains are to be expected.”