- EUR/USD defends the immediate support of 1.0700 amid a risk-on mood.
- The ECB is expected to keep interest rates unchanged this month due to a weak economy and declining inflation.
- EUR/USD trades in a Symmetrical Triangle chart pattern, which indicates a volatility squeeze.
The EUR/USD pair managed to defend the round-level support of 1.0700 on Monday. The major currency pair broadly struggles for a decisive move as investors await the United States Consumer Price Index (CPI) data for August, which will be published on Wednesday at 12:30 GMT.
S&P500 opens on a bullish note amid a cheerful market mood as investors shift focus to the context that the Federal Reserve (Fed) would not raise interest rates in the remaining year. The US Dollar Index remains under pressure after a nominal improvement in China’s inflation.
On the Eurozone front, investors remain uncertain about the interest rate decision by the European Central Bank (ECB) for September monetary policy. Analysts at Commerzbank a majority of the ECB council members will probably vote for unchanged key rates due to the weak economy and the downward trend in the inflation rate.
EUR/USD trades in a Symmetrical Triangle chart pattern on an hourly scale, which indicates a volatility squeeze. The downward-sloping trendline is plotted from September 6 high at 1.0749 while the upward-sloping trendline is placed from September 7 low at 1.0686.
The shared currency pair remains closer to the 20-period Exponential Moving Average (EMA) at 1.0725 for the past three trading sessions, portraying a sideways performance.
Meanwhile, the Relative Strength Index (RSI) (14) oscillates in the 40.00-60.00, demonstrating a directionless performance ahead of the US inflation data.
Fresh upside bias would appear if the asset delivers a breakout of the neutral triangle September 8 high at 1.0744. A decisive break would send the major toward the horizontal resistances plotted from September 4 high at 1.0809 and September 1 high at 1.0882.
In an alternate scenario, a breakdown below September 7 low at 1.0686 would expose the asset to May low at 1.0635. A slippage below the latter would expose the asset to the round-level support of 1.0600.
EUR/USD hourly chart
-638300382001887116.png)
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
Australia’s Unemployment Rate increases to 4.1% in April vs. 3.9 % expected
Australia’s Unemployment Rate rose to 4.1% in April, compared with the expectations of 3.9% and the previous figure of 3.8%, according to the official data released by the Australian Bureau of Statistics (ABS) on Thursday.
USD/JPY trims losses below 154.50 following Japan’s GDP data
USD/JPY trims losses near 154.45 during the early Asian session on Thursday. The softer US CPI inflation data has exerted some selling pressure on the US Dollar. However, the major pair recovers modestly following the recent weaker-than-expected Japan’s Gross Domestic Product in the first quarter of 2024.
Gold rally continues with buyers eyeing $2,400 as inflation recedes
Gold price extended its uptrend for the second straight day on Wednesday and hit a three-week high of $2,390 after data revealed by the US Bureau of Labor Statistics showed inflation is ebbing, increasing the odds for a Federal Reserve rate cut in 2024.
Will CPI report showing inflation eased in April push BTC to $70K?
Bitcoin price jumped by 5% on Wednesday, seeing the American session outperform the Asian session for the first time in a while. Tailwinds sprouted fron US inflation release.
Dow Jones Industrial Average soars 350 points, sets new all-time high as rate cut hopes surge
The Dow Jones Industrial Average clipped into a fresh all-time high on Wednesday, gaining almost nine-tenths of a percent during the US market session after US Consumer Price Index inflation slipped further back.