EURUSD Falls Ahead of Eurozone Inflation News


The Euro (EUR) extended downside movement against the US Dollar (USD) on Friday, for the fourth day in a row, dragging the price of EURUSD to less than even 1.0950 ahead of the Eurozone inflation report which is scheduled for release today. The technical bias remains bearish due to a Lower Low and Lower High in the recent wave on daily chart.

Technical Analysis

As of this writing, the pair is being traded around 1.0946. A support may be noted near 1.0877, the 61.8% fib level ahead of 1.0817, the channel support as demonstrated in the following daily chart. A break and daily closing below the channel support could incite renewed selling pressure, validating a dip towards the 1.0000, the parity level.

EURUSD Falls Ahead of Eurozone Inflation News

On the upside, the pair is expected to face a hurdle near 1.0990, the 50% fib level ahead of 1.1074, the channel resistance and then 1.1100, the confluence of psychological number as well as 38.2% fib level. The technical bias will remain bearish as long as the 1.1128 resistance area is intact.

Eurozone Inflation

The EuroStat is due to release the Eurozone Consumer Price Index (CPI) report for July today. It is considered a main gauge for inflation. According to the median projection of different economists, the CPI remained 0.2% in July as compared to the same inflation in the same month of the year before. Generally speaking, higher inflation figure is considered positive for the economy thus a worse than expected actual outcome will be seen as bearish for EURUSD and vice versa.

Trade Idea

Considering the overall technical and fundamental outlook, buying the pair around channel support could be a good strategy if we get a bullish pin bar or bullish engulfing candle near that level.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Forex Analysis

Commodity Currencies at Strategic Levels. What Can Affect a Breakdown Downwards? Market Analysis: AUD/USD and NZD/USD Turn Red The Dollar is Corrected after the Comments of the Head of the Federal Reserve USD/JPY Analysis: Prospect of a Breakout of the Level of 155 Yen per Dollar Market Analysis: EUR/USD Nosedives While USD/JPY Extend Rally

Latest articles

Weekly Market Wrap With Gary Thomson: UK100, USD, GOLD, OIL
Financial Market News

Weekly Market Wrap With Gary Thomson: UK100, USD, GOLD, OIL

Get the latest scoop on the week's hottest headlines, all in one convenient video. Join Gary Thomson, the COO of  FXOpen UK, as he breaks down the most significant news reports and shares his expert insights.

  • UK100 Share Index Rises
Trader’s Tools

What Is a Darvas Box Theory and How Does It Work in Trading?

The Darvas Box Theory, pioneered by Nicolas Darvas in the 1950s, has transcended its stock market origins to become a valuable tool for forex traders. This method leverages specific price movements and patterns, known as the Darvas Box, to track


NFLX Stock Price Falls Despite Subscriber Growth

Yesterday, after the close of the main trading session on the stock market, Netflix reported to investors for the 1st quarter of 2024.

The report turned out better than expected:
→ earnings per share: actual = USD 5.28, forecast = USD 4.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.