EUR/USD holds gains despite cooling eurozone inflation pressures

EUR/USD maintained its bullish stance despite softer eurozone inflation data, trading firmly above key support levels. The pair's resilience suggests underlying euro strength, with markets looking past temporary inflation moderation. Recent CPI figures showed eurozone inflation easing more than expected, yet the single currency found support from improved risk sentiment and technical factors. The US Dollar Index (DXY) faced selling pressure, providing additional tailwind for EUR/USD. Key resistance sits at 1.0950, while the 1.0880 level offers immediate support. Market participants are weighing the European Central Bank's likely response to cooling inflation against the Federal Reserve's data-dependent stance. Technical momentum indicators remain constructive, with the pair trading above its 50-day moving average. Traders should watch for any shifts in ECB communication regarding the pace of future rate adjustments, which could impact the pair's medium-term trajectory.