EUR/USD bearish channel in September.

EUR/USD slipped below 1.0600 during Friday's American session, retracting part of its daily gains, despite a positive market tone following PCE inflation data. The rebound from the year's lowest daily close improved the Euro's outlook, although the overall trend remains bearish. A potential recovery could reach 1.0700 without altering the bearish trend.
On the 4-hour chart, technical indicators suggest slight upside potential before the Asian session. However, overcoming the strong resistance at 1.0580 is crucial for further gains, initially targeting 1.0600 and then 1.0630. Conversely, consolidation below 1.0550 would increase bearish pressure, exposing support levels at 1.0520 and 1.0495.
Thursday saw a sharp increase in EUR/USD, rebounding from monthly lows and nearing 1.0600, primarily driven by a correction in the US Dollar after an extended bullish period.
Market sentiment weighed on the US Dollar, despite robust US economic data. Second-quarter GDP showed a 2.1% annualized growth, and Initial Jobless Claims were lower than expected at 204,000. The key release of the week is the Core Personal Consumption Expenditure Price Index, which could trigger a USD rally if it indicates inflation increase.
Comments from European Central Bank (ECB) members had minimal impact on the Euro. Market expectations point to no rate hike in October and low probabilities for December, with a strong perception that the ECB has peaked. However, data remains crucial, and recent news from Germany indicates a slight easing of inflation, providing some support for the Euro.
Germany's annual inflation rate dropped from 6.1% to 4.5%. On Friday, Eurostat will release the Eurozone Harmonized Index of Consumer Prices, expected at 4.5% (down from 5.2%) for the headline rate and 4.8% (down from 5.3%) for the core rate. At the 1.0530 level, we have a crucial point to consider for a possible price decrease or increase, given the bearish channel since early September. Comment and leave a like; greetings from Nicola, the CEO of Forex48 Trading Academy.