EUR/USD Price Analysis: Sustains auction above 1.1000 ahead of US CPI

• EUR/USD is holding its breath above the critical support of 1.1000 amid the risk-on mood.
• US headline CPI is expected to soften to 4.4% while the core CPI is seen accelerating to 5.8%.
• ECB Lagarde has kept doors open for more than one additional interest rate hike.

The EUR/USD pair is maintaining its auction area above the psychological support of 1.1000 in the Asian session. The major currency pair is looking to add gains ahead as the US Dollar Index (DXY) is looking vulnerable above 101.20.

After the release of the modest United States Nonfarm Payrolls (NFP) report, investors are shifting their focus toward the US Consumer Price Index (CPI) data, which will release on Wednesday. Annual headline CPI is expected to soften to 4.4% while the core CPI that excludes oil and food prices is seen accelerating to 5.8%.

Last week, the European Central Bank (ECB) announced an interest rate hike by 25 basis points (bps) after ditching its 50 bps rate hike spell amid a sharp decline in credit distribution by European banks. However, ECB President Christine Lagarde has kept doors open for more than one additional interest rate hike.

EUR/USD has shown a decline move after failing to surpass April 26 high at 1.1095. The major currency pair has formed a Double Top chart pattern, which will get triggered only after slipping below the immediate support of May 02 low at 1.0942. The 20-period Exponential Moving Average (EMA) at 1.1020 is acting as a barricade for the Euro.

Also, the Relative Strength Index (RSI) (14) has shifted into the 40.00-60.00 range. A slippage below the same would trigger the downside momentum.

Going ahead, a downside move below May 02 low at 1.0942 will drag the asset towards April 12 low at 1.0915 and April 10 low at 1.0837

On the flip side, a decisive move above April 26 high at 1.1095 will drive the asset toward a fresh 13-month high at 1.1185 followed by the round-level resistance at 1.1200.

EUR/USD two-hour chart