EUR Shrugging off Soft Inflation Data (6/30) – A Look at EUR/USD, EUR/JPY and EUR/GBP

EUR Shrugging off Soft Inflation Data (6/30) - A Look at EUR/USD, EUR/JPY and EUR/GBP

The EUR shrugged off poor German retail sales data but stalled after soft inflation data. The Flash Estimate for June inflation came in an an annual rate of 0.5%. This is the level Draghi said would be this year’s bottom. So far, we have not seen a real rebound, but it did remain at 0.5%, which was the lowest since Nov. 2009.

As we get into the 6/30 US session, the EUR is still resilient and traders seem to be trying to shrug off the soft inflation data. Let’s take a look at the EUR/USD, EUR/JPY, and EUR/GBP.

EUR/USD stalled at 1.3660 after a rally from 1.3640. The main level to watch out for is 1.3676. A break above this level should open up a bullish outlook, especially if price can hold above 1.36 on a subsequent pullback. A break below 1.3575 however would revive the bearish outlook. The EUR/JPY looks like it is pushing above a consolidation range, but stalled at 1.3850. This pair is bearish, and poised to test the 137.70 June low, with the 2014-low of 136.23 in sight as well. The EUR is most bearish vs. the GBP. It is stalling around the 0.80 mark, which could stick as support in the short-term. However, if this week fails to push above 0.8030, then the 2-week long flag pattern is likely to break and a bearish continuation would be in play.

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Fan Yang has been a professional forex trader and analyst since 2007. He specializes in technical analysis and has a Chartered Market Technician designation since 2011. He was the chief technical strategist at CMSFX He was also the founder and chief currency strategist at FXTimes Over the years, Fan has not only been a trader and analyst but also an educator. As a proponent of both technical and fundamental analysis in trading, Fan advocates simplicity and discipline as key factors in making trading decisions when faced with so many "clues" and "signals". Currently Fan Yang is the chief currency analyst and webinar instructor at