EUR/USD gained sharply after the US inflation data. It hit an intraday high of 1.17091 and is currently trading around 1.17026. Overall trend remains bullish as long as support 1.1575 holds.
The US Core PCE Price Index, released on August 29, 2025, rose 0.3% month-over-month in July, matching economists' expectations and June's rate, while the annual rate increased to 2.9% from 2.8%, the highest since February 2025. Excluding volatile food and energy prices, this key Federal Reserve inflation gauge indicates persistent inflationary pressures, complicating potential interest rate cuts in September 2025 as policymakers balance price stability and economic growth.
The pair is holding above the 55 EMA, 200 EMA, and 365 EMA in the 4-hour chart. Near-term resistance is seen at 1.1720; a break above this may push the pair to targets of 1.1765/1.1800/1.1835/1.1900. On the downside, support is seen at 1.1650; any violation below will drag the pair to 1.1620/1.15750/1.1545/1.1480/1.1435.
Market Indicators and Trading Strategy
Commodity Channel Index (CCI)- Bullish
Average Directional Movement Index (ADX) - Bullish
It is good to buy on dips around 1.1678-80 with a stop-loss at 1.1620 for a target price of 1.1835.


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