After yesterday's dovish Fed statement and economic projections, the USD was sliding across the board. The EUR/USD for example rallied and broke above a consolidation that has been developing for almost 2 weeks. EUR/USD 1H Chart 6/18(click to enlarge)The 1H EUR/USD chart shows a market that is bullish but is stalling under 1.1425. Today we saw better than expected jobless claims data, coming in at 267K, which beat forecast around 278K. Last week's print was 279K. Philly Fed Manufacturing also came in better than forecast. The print was 15.2, which was better than forecasts around 8.1 and the previous reading at 6.7. However, there was less than impressive inflation data. CPI inflation in May was at 0.4%, which missed forecasts of 0.5%. It was however stronger than the 0.1% reading for April. The core reading was 0.1%. The inflation data is looking up, but not at a pace that would pressure the FOMC to raise rates by September. The EUR/USD is bullish at least in the short-term. Most likely, price will push above 1.1425 and continue the short-term uptrend to at least test the May-hgh at 1.1466. A break below 1.1386 however, opens up a possible bearish correction in the short-term. However, we should limit the bearish outlook first to 1.1330-1.1340, then the 1.13 handle.