EUR/USD: CPI Data and Fed Will Shape the Trend

6 days agoThe 4-hour chart of the EUR/USD pair is currently showing a bearish trend with the 34-EMA and 89-EMA moving averages crossing downwards, signaling a strong sell signal. The price is currently hovering around the support zone at 1.10092, and a further decline would confirm the current downtrend. This support level has been a key point of interest during previous price recoveries, but it is currently being tested.

Based on the current technical indicators, EUR/USD is in a key area. A break below the current support could push the price to new lows, while a bounce could take the price back to the upper resistance zone at 1.1100.

Amid the wait for the latest US CPI data and the Fed’s interest rate decisions, the market is likely to witness more volatility. Stronger-than-expected CPI data could dampen expectations for a rate cut, which could support the USD and push EUR/USD lower. Conversely, if the data is weaker than expected, the Euro could receive some support.