FXstreet.com (Barcelona) - Flows ahead of the European session have just sent the EUR/USD on a quick 22-pip fall to 1.2260 as more downside gets tested. The pair is now trading at 1.2270/75 area with the biggest event of the session being the CPI inflation report in the Eurozone, at 09:00 GMT.
While the annualized headline is expected to stay at +2.4% in July, despite the consensus of monthly contraction of -0.5%, the annualized Core prices should rise from +1.6% to +1.9%.
“Immediate downside targets are the one month uptrend channel support line at 1.2268 and the 1.2162/33 zone where the mid-July low and the current August trough can be found”, wrote Commerzbank analyst Axel Rudolph, expecting those areas to be reached soon, while the pair trades below the 55-day MA, at 1.2395.
While the annualized headline is expected to stay at +2.4% in July, despite the consensus of monthly contraction of -0.5%, the annualized Core prices should rise from +1.6% to +1.9%.
“Immediate downside targets are the one month uptrend channel support line at 1.2268 and the 1.2162/33 zone where the mid-July low and the current August trough can be found”, wrote Commerzbank analyst Axel Rudolph, expecting those areas to be reached soon, while the pair trades below the 55-day MA, at 1.2395.
