EURUSD → CPI ahead. What should we prepare for?

EURUSD is testing 1.0864 for a breakout. The price is heading towards downtrend resistance. Unpredictable CPI ahead, but technically the currency pair could bounce back down.

All eyes are on the consumer price index today. Traders expect a strong decline in the CPI from 0.4% to 0.3%, which generally indicates the state of inflation and is a strong lever for the Fed when making interest rate decisions. Dollar index continue to decline amid news expectations, which makes the euro strengthen towards resistance. There is a high probability to see neutral-positive CPI data, which may support the trend of the currency pair.

Resistance levels: 1.08643, channel resistance, 1.09374
Support levels: 1.08027, 1.07365

Technically, on the background of the news, the price may test the resistance of the downtrend and after capturing liquidity to continue the decline to the targets indicated on the chart.

Regards, R. Linda!

Comment:

That's great. Price failed to pass through the 1.0864 resistance, although it could have tested the upper zone before the news.

Inflation and CPI data strengthened the dollar and the euro went down.

Trade active:

The first goal will soon be achieved

Trade closed: target reached:

Intermediate target of 1.0736 reached

Comment:

Most likely, based on the candlestick pattern, the decline may continue and the price may soon update the minimum

Trade active:

A breakdown of 1.0725 may continue the price decline

Trade closed: target reached

Trade active:

A retest of 1.07 is being formed. There is no news today and the fundamental background is favorable for breaking the level and continuing the fall

Trade closed: target reached:

All targets have been reached

Trade active:

Although a pullback is forming, but the situation persists. It is possible to continue falling after resistance retest