The EURUSD currency pair continues to stay above the 1.1000 level, currently at 1.10338, due to the ongoing decline of the USD Index.

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• EUR/USD is sustaining comfortably above 1.1000 as the USD Index has continued its losing spell.

The pair currently trades last at 1.10338.

The previous day high was 1.1027 while the previous day low was 1.0977. The daily 38.2% Fib levels comes at 1.1008, expected to provide support. Similarly, the daily 61.8% fib level is at 1.0996, expected to provide support.

The EUR/USD pair has confidently shifted above the psychological resistance of 1.1000 in the Asian session. The major currency pair is in a bullish trajectory as the US Dollar Index (DXY) has extended its losses to 101.37 ahead of the United States Consumer Price Index (DXY).

S&P500 futures have added marginal gains after a bullish Tuesday, portraying significant strength in the risk appetite theme. Investors have shrugged off uncertainty associated with upcoming corporate earnings and inflation data.

The USD Index has continued its four-day losing spell. The downside momentum in the USD Index indicates that investors are very much confident about only one more interest rate hike announcement from the Federal Reserve (Fed) by year-end.

For more clarity, investors are awaiting inflation data. Analysts at ANZ expect both headline and core CPI inflation to rise by 0.3% MoM in June. Such an outcome would still be too hot for the Fed. Although goods price inflation should remain subdued and further reductions in rent-based inflation are likely to occur, the Fed needs to see more of a slowdown in core services ex-housing to be confident overall inflation is headed to 2% sustainably. For this to happen, labor market conditions need to soften further and with it wage growth.

On the Eurozone front, the final reading of German inflation shows that annual price pressures are at 6.8% and the European Central Bank (ECB) has no other option than to raise interest rates further. ECB President Christine Lagarde has already confirmed that more interest rate hikes are appropriate to tame stubborn inflation.

About inflation guidance, ECB Governing Council member Francois Villeroy de Galhau said on Tuesday that inflation will continue to decline and will be back at 2% by 2025.

Technical Levels: Supports and Resistances

EURUSD currently trading at 1.1036 at the time of writing. Pair opened at 1.1009 and is trading with a change of 0.25 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.0923, 50 SMA 1.086, 100 SMA @ 1.0836 and 200 SMA @ 1.0632.

The previous day high was 1.1027 while the previous day low was 1.0977. The daily 38.2% Fib levels comes at 1.1008, expected to provide support. Similarly, the daily 61.8% fib level is at 1.0996, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.0981, 1.0954, 1.0931
• Pivot resistance is noted at 1.1032, 1.1055, 1.1082

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