EUR/USD Flat Awaits US CPI Shock Tonight!

thecekodok


The US dollar is trading at a 3-week high as the market awaits the latest US inflation report.


Data will be released in the New York session tonight (Tuesday) with the US consumer price index (CPI) for June expected to rise to 2.6% from 2.4% previously.


Meanwhile, the Euro is trading weakly under pressure from President Donald Trump's new tariff threat against the European Union (EU) as EU Trade Ministers consider retaliatory tariffs on €72 billion of American goods.


The price movement on the EUR/USD currency pair chart shows a bearish pattern, but since last week's close the price has been flat below the 1.17000 zone.


The bearish signal remains observed with the price still below the Moving Average 50 (MA50) resistance line on the 1-hour time frame on the chart.


If the US dollar shows a strengthening reaction after the CPI data is released, the price decline is expected to continue lower.


The focus zone at 1.16000 is expected to be the target to be tested and the price reaction will be watched for further direction.


Conversely, if the price makes an increase above the 1.17000 zone and breaks through the MA50 barrier, this will be an early signal for a change in the price trend again.


Next, the price increase is expected to return to the resistance zone at 1.18000 which was tested in early July.