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EURUSD tests five-week-old support line ahead of US inflation

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FX:EURUSD   Euro / U.S. Dollar
EURUSD remains pressured around the yearly lows as the pair traders await July month Consumer Price Index ( CPI ) data from the US. The major currency pair dropped to the lowest since March the previous day while declining for the eighth consecutive day. However, a downward sloping trend line from July 07, around 1.1700, restricts the quote’s immediate losses. Although the oversold RSI conditions challenge short-term EURUSD downside, bearish MACD and sustained trading below 200-SMA keep the pair sellers hopeful. Hence, a clear break of the 1.1700 will serve as a trigger for the fresh selling towards another falling trend line support, this time from June 18, near 1.1655.

On the contrary, the corrective pullback may aim for the last month’s low near 1.1750 before directing the EURUSD bulls to the 200-SMA surrounding 1.1830. It’s worth observing that the 1.1800 round figure may act as an extra filter to the north before 1.1830 but bears are less likely to leave the desk until the prices stay below July’s low close to 1.1910. Overall, EURUSD portrays bearish consolidation moves ahead of the key US inflation figures.

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