EUR/USD Fades Bullish Momentum as US Dollar Rebounds

The EUR/USD pair is showing fading bullish momentum after the US Dollar (USD) pared its losses following in-line US Consumer Price Index (CPI) data. The pair currently trades around 1.1521, having touched an intraday high of 1.1563.

Although the US Dollar initially weakened due to lower CPI readings of 3.4% and 2.5%, respectively, it later regained its strength as energy prices remained elevated. Safe-haven demand for the USD was also supported by ongoing tensions in the Middle East and the Strait of Hormuz.

The EUR/USD pair holds above the 1.1500 psychological mark and the 50-day Simple Moving Average (SMA) at 1.1466, but technical analysis suggests weakening bullish momentum. The Relative Strength Index (RSI) stands near 56, while the Moving Average Convergence Divergence (MACD) remains in positive territory.