EUR/USD is rising quickly from 1.18 after US Core CPI significantly missed estimates with 4% YoY against 4.2% projected. So, the chances of Fed tapering have dropped.
The euro/dollar pair has surpassed the 50 Simple Moving Average on the four-hour chart, completing a trio of victories – it had already topped the 100 and 200 SMAs. Momentum is turning positive and the currency pair faces new hurdles.
The recent top of 1.1850 is the immediate resistance line. It is followed by 1.1885 which caped a recovery attempt last week. The big prize is 1.1910, a double-top that defends the psychologically significant level of 1.20.
Some support awaits at 1.1830, a temporary cap. The pivotal 1.18 line provided support last week and it is followed by 1.1770, last week's low.
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