The pair tested 1.1400 level yesterday but ended up plummeting to 1.1305, as political turmoil in Europe alongside with a fading momentum in Wall Street benefited the greenback in the American afternoon. The market was in a much better mood with European indexes closing with solid gains amid relief headlines related to the US-China trade war. Ongoing Brexit uncertainty, Italy budget concerns, and soft macroeconomic figures of the Union add weights to the euro.
I was very clear on previous forecasts, all possible upwards attempts would be used as selling opportunities by the USD bulls.
Today we will have the US CPI figures. The outcome will probably be the most important determining factor in the direction of EUR/USD, but will be valid for XAU/USD as well. A better than expected numbers set may end the doubts on Fed 2019 rate hikes.
Technically:
The pair is still trading in a “directionless zone” symmetrical triangle. This formation is usually a sign of consolidation ahead of another directional move in the main trend. A clear break below 1.13000, would start a new sell-off in EUR/USD. The targets of the pair, lead by a bearish breakout of the triangle, will be 1.12500, 1.12100, 1.11600. and 1.10800.
This chart has been published for educational purposes only and cannot be considered as a trading advice.
This analysis prepared by the global analysts of Chartreaderpro.com and published on Investing.com. Commercial distribution is strictly prohibited.
