Euro rose on firmer ECB hold expectations and a weaker dollar

Eurozone inflation ticked up slightly, but remains within the ECB’s target range.

Eurozone Nov CPI rose to 2.2% YoY (prev. 2.1%, cons. 2.1%). Core CPI held at 2.4%, while services inflation edged up to 3.5%.

Meanwhile, German Central Bank President Nagel stressed that Eurozone inflation has reached the ECB’s target and is unlikely to deviate from current levels despite US tariffs.

EURUSD briefly retested EMA21 before rebounding above the 1.1640 level. Diverging bullish EMAs indicate a potential uptrend extension.

If EURUSD breaches above the resistance at 1.1670, the price may advance toward the next resistance at 1.1730.

Conversely, if EURUSD breaks below EMA21, the price could retreat toward the following support at 1.1580.