EURUSD Price Analysis: Bulls and bears about to go head to head

EURUSD bears eye a deeper correction, but US CPI looms.
EURUSD bulls look to guards 0.9950/75 that could hold as support.

Ross J Burland FXStreet

The euro was hit hard on Wednesday and is trying to correct on Thursday, although is facing a robust US Dollar as traders braced for any upside surprise in the upcoming US Consumer Price Index report. US yields and the greenback rallied on a soft US Treasury auction which has left a bearish outlook on the charts for the rest of the week as the following illustrates from a bearish perspective.

EURUSD H1 chart

The bearish trend is dominant and the bears eye a break of the 0.9990s for a run to test below 0.9950 and the last quarter of the area. In doing so, this will be running into length built up over the course of the week, piggybacking on Friday's risk-on rally. On the other hand, a miss in the inflation data would likely play havoc on the greenback and see the Euro as a major beneficiary:

EURUSD daily chart

The price moved out of the trendline resistance and is therefore could be teeing up for a move higher. 0.9950/75 could hold as support.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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