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EUR/USD Rallies to Resistance after German Inflation Data

Germany's CPI month-on-month inflation in September was flat, just as it had been in August. The average forecast called for a slight dip at -0.1%. Although we can say this is a positive surprise, it is really not that impressive as inflation continues to be low in the eurozone, and the ECB is still considering further stimulus. Well, we should see in Thursday whether this is still true.

(EUR/USD 1H Chart 9/29)

Meanwhile, the EUR/USD is in a bullish attempt after starting the week at a new low on the month and year - at 1.2663. It rallied above 1.27, but is now seeing sellers at some short-term resistance factors:
1) A falling trendline from last week's high of 1.29.
2) The 50-hour simple moving average (SMA)
3) The 1H RSI was at 60 - if it is to maintain bearish momentum, it should turn down.

If price pushes above 1.2720, the next resistance is at 1.2760, the 100-hour SMA and a previous resistance. 

If price now turns back down below 1.2690, the pressure will remain on the 1.2663 low. Note in the weekly chart, that the Nov. 2012 low is at 1.2660. A break below this opens up the 1.24-1.2460 area, which includes a previous support pivot, resistance pivot, and the 78.6% retracement level.

(EUR/USD Weekly Chart 9/29)