EUR/USD Price Analysis: Bulls find comfort above the 1.0700 level after the US CPI release

• EUR/USD bullish price momentum has yet to surpass the 50-DMA.
• US Dollar safe-heaven demand receded since the market stabilized after the SVB fallout.
• Bullish momentum is likely to remain intact on a lighter note of 25-bps rate hike expectations for the Fed.

EUR/USD bulls settled above the 1.0700 mark after four days of successive rallies. The pair is hovering around the 1.0732 level at the time of writing, which is a multi-tested support zone pegged by the 50-DMA on the daily time frame. 

A successive break to the 50-DMA, which also coincides with a 38.2% Fib level, will reinforce the EUR/USD toward the next resistance zone starting from the 1.07942 level.

Heading toward the ultimate destination at the 1.0800 level, EUR/USD has to surpass the 50% Fib level placed just beneath the aforementioned round figure mark. The 50-DMA has been keeping a lid on EUR/USD for the last two days despite strong bullish momentum and a mild United States Consumer Price Index (CPI) release on Tuesday.

The bullish momentum keeps on rolling for EUR/USD. The market is heading into the next Federal Reserve (Fed) FOMC meeting with a lighter foot and is pricing in just a 25 basis points (bps) rate hike, less than the 50 basis points that was being priced prior to the banking sector worries.

Downside momentum may resurface due to delicate market conditions, particularly as we experienced financial turbulence earlier this week, this could potentially stimulate demand for the safe haven US Dollar. Any downside price pressure is likely to be limited around the 23.6% Fib level at 1.0660, which coincides with both the previous day’s low as well as 21-DMA.

EUR/USD: Daily chart