US CPI Holds, EUR/USD Reaches Highest Level Since April 2022!

<p>&nbsp;The US dollar suffered a sharp decline in the New York session yesterday after a surprise reading of the latest published United States (US) inflation data.</p><p><br /></p><p>Taking center stage this week, the annual reading of the US consumer price index (CPI) came in at 3.0% for June, down from a forecast of 3.1% from May's level of 4.0%.</p><p><br /></p><p>Alongside last week's dismal NFP jobs data, this reinforced policymakers' assertions that the tightening phase is nearing its end.</p><p><br /></p><p>Other major currencies including the Euro took advantage of the space to strengthen and managed to reach their latest highs since April 2022.</p><p><br /></p><p>On the chart of the EUR/USD pair, a daily gain of around 120 pips was recorded yesterday after the surge in the New York session.</p><p><br /></p><p>The price has made gains above the highs reached last May until it reached a recent high of 1.11400 at the end of the session.</p><p><br /></p><p>With yesterday's strong momentum, the price increase is expected to continue today with a target towards the 1.12000 level.</p><p><br /></p><p><br /></p><p>It is not impossible for the increase to continue higher when trading ends at the end of the week.</p><p><br /></p><p>But investors need to be alert for a price drop that can happen again.</p><p><br /></p><p>A decline in price if it plunges below the 1.10700 zone and starts to move below the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the chart will be an early signal of a trend change to occur.</p><p><br /></p><p>The 1.10000 level will be the focus again to be tested and if it drops lower, the price will head around the 1.09000 zone which was also the focus before.</p>