EUR/USD Analysis Report: The Euro remains positive, although the near-term direction will largely be determined by US CPI data;

The Euro maintains a positive bias early on Wednesday and gains momentum after bulls paused.

 Full reversal of the January retreat (1.0705/1.0483) creates the first indication of the wider uptrend from the 2022 bottom continuing (0.9535).

Although overbought conditions warn of protracted consolidation, bullish daily studies add to the favorable picture.

As traders slowed down, they awaited the release of the US December inflation report on Thursday, which is likely to give new direction signals.

Today’s lack of economic updates from Europe would also contribute to a calmer atmosphere.

The US inflation rate is predicted to decrease to 6.5% in December from 7.1% in November as price pressures continue to ease, indicating that the Fed’s strong policy tightening measures are beginning to have an impact on the high inflation rate and clearing the way for further monetary policy easing.