A rise in inflation readings ignites power to the euro bulls at yesterday's session. The Greek saga has been the central point for a while. The Greek PM Alexis is likely to head to Brussels tonight. These factors encouraged euro bulls.
The euro area's annual inflation is expected to be 0.3% up in May from 0.0% in April, according to a flash estimate from Eurostat.
Today's events: Today is understandably a busy day on the markets. A lot of significant macroeconomic reports are due for today. We expect positive readings except for Germany. The ECB will maintain interest rates unchanged. Retail sales and unemployment rate readings are expected to print positive data.
Technical analysis: The pair gave a strong close, rose by 2% at Tuesday's session. The euro bulls managed to close above 20,50 &100 moving averages. The parallel resistance is seen at 1.1210 and 1.1240 100Dema. To regain strength, bulls must close above 1.1240. If not, bears will try to re-test 1.1055 initially and 1.0980 later. The ECB needs a weak euro. At today's Asian session, the pair is trading at 1.1148 compared to 1.1151 on Tuesday's close. Intraday support is found at 1.1130 and 1.1110. For an intraday session, we expect limited upside. Risky buying is expected above 1.1160 with small targets at 1.1190, 1.1210, and 1.1230. Strong momentum for bulls is seen above 1.1240 in case the pair closes above that level. In this case, bulls will aim at 1.1325 and 1.1450. For sellers trade is available below 1.1110 with targets at 1.1090 and 1.1060 initially, later 1.0975.
Trade: Strong momentum is above 1.1240 on closing basis, intraday small trade is above 1.1210