EUR/USD has extended its sideways grind into a third straight day. As FXStreet’s Eren Sengezer notes, the pair has the potential to move sharply in either direction.
“The symmetrical triangle that seems to have formed on the four-hour chart confirms the view that the pair is about to break out of its range.
“On the upside, 1.0230/1.0240 (Fibonacci 38.2% retracement of the latest downtrend, 200-period SMA on the four-hour chart) aligns as key resistance. With a weak CPI print, the pair could rise above that level and target 1.0300 (psychological level, Fibonacci 50% retracement) and 1.0370 (Fibonacci 61.8% retracement.”
“Significant support is located at 1.0200 (psychological level, 100-period SMA, 50-period SMA). If the dollar regathers strength on a hot inflation report, the pair could pierce through that support and extend its decline toward 1.0150 (Fibonacci 23.6% retracement) and 1.0100 (psychological level, static level).”
See – US CPI Preview: Forecasts from nine major banks, soaring inflation to ease off in July