A 2.6% yoy rise in US CPI has so far failed to impress traders as the Fed may remain patient longer than the market.
After a short consolidation around 1.1900, the RSI has receded from the overbought area, laying the groundwork for a new round of rallies. The next target would be the key resistance level of 1.1990 from the daily chart.
A bullish breakout may signal that the euro could resume its year-long rally.
In case of a pullback, 1.1870 is a critical support to keep the optimism intact.
