The EUR/USD pair has continued to advance on Thursday, surpassing the 1.0900 mark, as the dollar remains on the defensive, with investors' focus turning to Friday's Eurozone inflation data and U.S. core personal consumption expenditures (PCE) price index – the Federal Reserve's preferred gauge of inflation.
At the time of writing, the EUR/USD pair is trading at 1.0905, 0.56% above its opening price, having printed a one-week high of 1.0926. Meanwhile, the DXY Index dropped to 102.15, recording a 0.46% decline on the day.
Germany reported March inflation figures which showed the Harmonized Index of Consumer Prices rising by 7.8% YoY, above the consensus of 7.5% but down from February's 9.3%. German bond yields advanced as a reaction, with the 10-year yield rising to 2.38%.
Across the pond, the U.S. reported the final estimation of the Q4 2022 GDP figures, which showed economic growth was downwardly revised to 2.6% from 2.7% previously estimated. Other data showed that initial jobless claims for the week that ended on March 24 rose to 198,000 from 191,000 the previous week.
Despite data coming on the soft side, Wall Street indexes advanced on Thursday. The S&P 500 gained 0.57%, the Dow Jones Industrial Average climbed 0.43%, and the Nasdaq Composite rose 0.73%.
Investors now focus on inflation numbers on both sides of the Atlantic. The Eurozone Core Harmonized Index of Consumer Prices is expected to grow 6.7% YoY in March, while the U.S. Core PCE Price Index is seen up 4.7% over the 12 months to February.
From a technical perspective, the EUR/USD maintains a short-term positive outlook per the daily chart's indicators. The RSI and MACD point upwards, suggesting that the bulls remain in control while the pair holds above its main moving averages and the critical 1.0900 level.
On the upside, the following resistance levels line up at t 1.0950 and the 1.1000 psychological mark ahead of 1.1032 (February high). On the downside, the 1.0900 now stands as the immediate support level, followed by the 1.0820 and 1.0800 zones.
