Technical Analysis of EUR/USD

The EUR/USD pair continues to trade in a bearish trend on the four-hour timeframe. Price rejected to the downside from the VIM zone around the 1.1688 level, as mentioned in the previous report. The pair declined on Tuesday following the release of U.S. inflation data and is currently trading around the 1.1647 level. Further downside movement is expected during today’s session.

Key Economic News

The U.S. dollar is awaiting the release of the Producer Price Index and monthly Retail Sales data today. These releases are expected to impact U.S. dollar movements and, consequently, the EUR/USD pair.

Liquidity Levels

Prices are expected to decline, targeting the 1.1618 level, followed by the 1.1588 level.

Invalidation Scenario

The bearish scenario will be invalidated if an hourly candle closes above the 1.1685 level.