Technical Analysis of EUR/USD

The EUR/USD pair is moving in a bearish trend on the daily timeframe and the four-hour timeframe. Prices have rejected to the downside from the VIM zone around the 1.1688 level. Currently, prices are trading near the 1.1665 level, and a continuation of the bearish bias is expected during today’s session.

Key Economic News

The US dollar has faced several challenges during the recent period, starting with attempts to control oil in Venezuela, moving to discussions about seeking control over Greenland, and ending with pressures and investigations related to Jerome Powell, Chairman of the US Federal Reserve.

These challenges were clearly reflected on the price chart, appearing as strong fluctuations and high volatility, which indicate a state of instability and uncertainty dominating the markets during the current phase.

In this context, the US dollar is awaiting the release of US inflation data (CPI) tomorrow, which is expected to have a strong and direct impact on the dollar’s performance, as it represents a key factor in determining the future direction of the Federal Reserve’s monetary policy.

Accordingly, any strong movement in the US dollar will be directly reflected on the EUR/USD pair, where sharp moves and increased volatility may occur following the data release, especially if the figures come against expectations, potentially defining the pair’s short-term direction.

Liquidity Levels:

Prices are expected to decline and target the 1.1588 level, followed by the 1.1473 level.

Scenario Invalidation:

The bearish scenario will be invalidated if an hourly candle closes above the 1.1745 level.