- The EUR/USD pair is trapped within two chart patterns, a valid breakout will bring new opportunities.
- The pressure remains high after its failure to retest the downtrend line.
- The FOMC and the ECB could bring sharp movements during the week.
The EUR/USD forecast sees the pair continue to move sideways as the Dollar Index is trapped within a symmetrical triangle. In the short term, the pair could extend its sideways movement. The current week could bring sharp movements as the economic calendar is filled with high-impact events.
The currency pair erased teh Friday’s gains registered after the US inflation data publication. As you already know, the CPI registered a 0.8% growth versus a 0.7% expected, while the Core CPI rose by 0.5% in November matching expectations.
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In the medium to the long term, the USD was bullish. The US currency received a helping hand from the Prelim UoM Consumer Sentiment, so the current rally is natural.
Tomorrow, the US PPI could report a 0.5% growth while the Core PPI is expected to rise by 0.4% in November. Still, the FOMC on Wednesday along with the US retail sales data, and the ECB on Thursday are seen as high-impact events that could change the sentiment.
It remains to see how the FED will react after higher inflation being reported on Friday. The traders are somehow expecting the Federal Reserve to hike rates in the next monetary policy meetings.
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EUR/USD Forecast: Price Technical Analysis – Range Formation
The EUR/USD pair failed to stabilize above the 1.1300 psychological level and now is traded at 1.1275 level. In the short term it is trapped within a narrow triangle. Escaping from this pattern could bring us a clear direction.
Still, only a valid breakout from the 1.1374 – 1.1186 range could really activate a strong movement, up or down. Personally, I really hope that the fundamentals will help the EUR/USD pair to make a valid breakout from the current range and could bring new opportunities.
As you can see on the H4 chart, the pressure remains high after failing to reach and retest the downtrend line. Making a valid breakdown below the ascending pitchfork’s lower median line (lml) could activate more declines.
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