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Euro CPI Data Pushes EURUSD Higher

EUR strengthened against its rivals today after the Eurostat reported the Consumer Price Index which is considered important to currency valuation because rising prices lead the central bank to raise interest rates out of respect for their inflation containment mandate. According to the report, Euro are annual inflation is .8% in February 2014 stable compared with January. Economists were expecting the CPI to decline to .7%. A separate report on German Retail Sales showed that the German retail sales rose 2.5% last month beating the economist’s expectation of an increase of 1%. 

On the daily chart, the pair found resistance at 1.3817 and is still showing the bullish sign according to the ascending triangle and might break the resistance trend line to continue the upward movement. However market is waiting for the US prelim GDP data which is coming out at 8:30 AM EST. The pair might also reverse the trend if the US GDP data would be strong.