EUR/USD stayed within the flag after holding the support and reversed to the upside, breaking above the formation. However, price is approaching a resistance zone between 1.1482 and 1.1500. If EUR/USD can break above, price many be on its way to the flag target near 1.1575. First support is at the top trendline of the flag near 1.4455, then the bottom of the flag near 1.1376. If price breaks below there, horizontal support crosses at 1.1330.
The CPI data for January was strong, and markets were quick to recognize it! However, how much longer could inflation be sustained at this level? Will the Fed hike 50bps at the March meeting to help stem the rise of inflation? With the FOMC meeting a little over a month away, traders should also be prepared, just in case the Fed decides to “jump the gun” with an unexpected intra-meeting rate hike!