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Forex pairs in this Article » EUR/USD (Córdoba) - The EUR/USD gathered momentum and pushed to fresh daily highs during the European session even after the Eurozone inflation figures came in softer-than-expected.

EUR/USD shrugs off inflation figures

Following a consolidation phase just above 1.3600, the EUR/USD rose nearly 40 pips in a matter of minutes and touched a high of 1.3649 in recent dealings, despite soft Eurozone inflation - CPI grew 0.8% YoY versus 0.9% expected in December. At time of writing, the EUR/USD is trading at the 1.3640 zone, recording a 0.1% gain on Tuesday.

Ahead of ECB decision

"It will be interesting to see if ECB chief Mario Draghi makes note of the growing concerns regarding deflation at the upcoming meeting this Thursday", said Boris Schlossberg, analyst at BK Asset Management. "Some analysts have hinted that the ECB may consider another rate cut to 10 basis points in order to combat the deflationary forces".

EUR/USD levels to watch

In terms of technical levels, if the EUR/USD breaks above 1.3650, next resistances are seen at 1.3670 (100-hour SMA/Jan 3 high) and 1.3700 (psychological level). On the downside, supports could be found at 1.3609 (daily low), 1.3570 (Jan 6 low) y 1.3533 (100-day SMA).
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