EUR/USD regaining 1.1900 on weak USD

• The bulls claim the 1.1900 handle on weak USD.
• Earlier EUR/USD spiked up as the US core Consumer Price Index year-on-year for April came below expectations at 2.1% versus 2.2% forecast by analysts.

The EUR/USD is trading at around 1.1913 up 0.53% on Thursday. 

Earlier in the American session, the single currency spiked and flirted with the 1.1950 level as the US core inflation came in lower than expected in April. However, the spike up was short-lived as the bears took control and brought the pair back to 1.1880 erasing the gains made on the news. As the European session came to an end the bulls are now lifting the EUR/USD once again above the 1.1900 handle.

The US core Consumer Price Index year-on-year for April came below expectations at 2.1% versus 2.2% forecast by analysts. However, the data is still above the 2% Fed’s inflation target. 

The 10-year benchmark Treasury yield and the US Dollar Index are both trading mixed on Thursday as traders are weighing the impact of the US inflation data.

EUR/USD 4-hour chart 

The medium-term trend is bearish but the bulls are staging a deeper pullback. The bulls can expect resistances at the 1.1950 psychological level and 50-period simple moving average (4-hour chart) and at the 1.2000 handle. To the downside, immediate support is seen at 1.1900 and at the 1.1850 psychological levels.