EUR/USD Bounces Off Session Lows as Eurozone Inflation Meets Forecasts

The EUR/USD currency pair bounced back from session lows on Wednesday to trade at around 1.1676, after completing an upward breakout from a slightly ascending channel formation in the 60-minute chart.

The pair has since rallied into overbought levels of the 14-hour RSI and advanced several levels above the 100-hour moving average line.

From a fundamental perspective, the EU's harmonized index of consumer prices for July matched the forecasted (MoM) change of 0.2%, while the core harmonized index of consumer prices was in line with the estimate of 2.5%.

In the US, building permits for July came in better than expected at 1.443 million versus a forecast of 1.37 million, but housing starts fell short of the forecasted reading of 1.35 million.