If EUR longs were looking for some help, they got zipperoo from the data

Sometimes traders need a little bit of help and the CPI numbers could have done that for euro longs. The headline number shouldn't be totally ignored but it will be as the focus will be on that core number.

Now that data risk is removed for shorts, we may be seeing the day's lows, and possibly more, tested now.

This 1.0515/25 area is gaining a bit of a reputation as protection of 1.0500.

EURUSD H4 chart

If we break it properly then 1.0500 could be in trouble.

There's still some fight left in old Teflon though, if you compare the size of the moves in USDJPY to EURUSD, and USDJPY vs GBPUSD. That's no reason alone to go piling into EUR trades though but it's showing that maybe there's no real appetite to push it massively lower.

For now, 1.0545/50 is once again the main resistance level, followed by yesterday's late high at 1.0570/75.