EUR/USD Technical Analysis: Tests an important confluence resistance ahead of US CPI

   •  The pair kept pushing higher through the mid-European session and tested an important confluence hurdle near the 1.1580-85 region, comprising of 50-day SMA and 38.2% Fibonacci retracement level of the 1.1815-1.1432 recent downfall. 

   •  The fact that the pair is holding comfortably above important intraday moving averages - 50, 100 & 200-hour SMA, bullish technical indicators on hourly charts point to an extension of the positive momentum. 

   •  However, indicators on the daily chart are yet to catch up with the positive momentum and hence, it would be prudent to wait for a convincing break through the 1.1580-85 confluence resistance before positioning for any further near-term up-move.

   •  Today's release of the latest US consumer inflation figures might influence Fed rate hike expectations and eventually play an important role in determining the pair's next leg of directional move.
 

EUR/USD daily chart