The Euro failed to rally despite soft US CPI data, rejecting the 50-day EMA and suggesting continued range-bound trading with downside risks.

A resurgent US Dollar is helping drive down the price, but the supportive area above the nearest round number below looks likely to hold.

The GBP/USD exchange rate retreated sharply after the US published the latest Consumer Price Index (CPI) data.

EUR/USD is ticking up on Wednesday, trading near 1.1650 at the time of writing, but lacks momentum to take distance from the one-month lows in the 1.1615 area. The US Dollar maintains a moderate bullish bias, despite the moderate inflation figures released on Tuesday.

The New Zealand dollar failed at key resistance near 0.58 on Tuesday, forming a bearish topping pattern as the US dollar strengthens broadly across FX markets.

The EUR/JPY pair continues its bullish run as the yen weakens further amid dovish BoJ policy, with traders targeting 188 on carry trade strength.