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The EUR/USD chart indicates an interesting situation from the point of view of technical analysis, namely, a “nested” head-and-shoulders pattern.
The global bearish SHS pattern is formed by the peaks of February, April, June.
The local bearish SHS pattern is formed by three peaks formed in the second half of June. This should give confidence to the bears, who have statistics that indicate the effectiveness of the pattern.
Please note that inflation data will be published today:
→ 12:00 GMT+3: Core CPI Flash Estimate.
→ 12:00 GMT+3: US Core CPE is an indicator that the Fed pays special attention to.
Earlier this week, both Lagarde and Powell reaffirmed their resolve to fight inflation. The release of news today can provoke sharp movements in the market — for example, a breakdown of the neck line of the local SHS pattern. Get ready for bursts of volatility.
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