Eurozone CPI data reflected slower-than-expected progress on inflation. The data showed a 2.6% YoY gain for headline prices and 3.1% YoY for core, down from 2.8% and 3.3% respectively in January. Prices were expected to drop to 2.5% YoY for headline and 2.9% for core. These data will support those ECB policymakers who advocate waiting until mid-year before assessing rate cuts.

Spot retains a heavy undertone on the daily chart but the EUR continues to meet support on dips and intraday price signals suggest decent support at or near 1.0800 area still. 

Intraday resistance is 1.0845/1.0850 and (stronger) at 1.0890.