Euro recovers as Eurozone inflation stays firm

Eurozone inflation remained steady in July, bolstering the Euro against the US Dollar. Eurostat reported the Harmonized Index of Consumer Prices (HICP) in July climbed 2.9% year-over-year, an uptick from June's 2.8%. The core HICP expanded to 2.5% year-over-year, surpassing both previous readings and economists' predictions, hinting at sustained price pressures. Monthly data showed a 0.2% rise in headline HICP, while core HICP stayed unchanged.

Germany's unemployment rate ticked up to 6.4% in June from 6.3%, with the number of unemployed growing by 6,000, slightly above expectations. This suggested a slight softening in labor market conditions. In the US Dollar camp, Dallas Fed President Lorie Logan's hawkish comments continued to lend support, with her asserting that monetary policy wasn't impeding the economy and that inflation wasn't on track to return to the Federal Reserve's 2% target.

Technical indicators suggested a bullish near-term bias for EUR/USD, trading above both the 20-period and 100-period Simple Moving Averages (SMAs). The short-term SMA was rising and positioned above the longer-term SMA, indicating an ongoing bullish trend. The Relative Strength Index (RSI) was at 67, indicating overbought conditions and a continued upside momentum, albeit with the risk of a brief pause or shallow correction increasing.

Support was initially seen at 1.1526, anchored by nearby horizontal levels at 1.1518 and 1.1513, which formed a tight demand band below the current spot. A deeper pullback would expose 1.1485, ahead of the 20-period SMA near 1.1457 and the 100-period SMA around 1.1423, where a broader bullish structure would likely attract dip-buying interest if these moving averages held.