EURUSD is having its time after the easing of US inflation. Most of the decrease in data came from energy prices, mostly because of the oil price decline. On the core CPI front, service sector prices continue their uptrend while goods continue their downtrend causing core CPI to remain flat.
After the upside move, EURUSD is testing the major horizontal area around 1.0340 which was major support since 2015 until broke this summer.
Around 1.0340 area is not just only a long-term resistance but also a short-term one too. T1.03-1.04 zone also contains the major medium-term downtrend, 50-day moving average, and Fibonacci %23.6 correction level. Lately, lots of long option volume has been seen around 1.04 too. A clear break to the upside might change a lot of things for EURUSD and even might start an uptrend.
But as long as the trend holds, bears might continue to hold control. FED members Kashkari and Evans still talked hawkish after the CPI data. They will want more data and a clearer view of inflation decline before committing to a more dovish tone because they want to pressure inflation expectations to eliminate any other upward waves.