EUR/USD is back to the lower range, falling down from the short lived bounce above 1.27. This comes despite as German data is decidedly mixed. The focus is on inflation numbers today, which precede the ECB decision on Thursday. Later on, we are due to get a reminder of why the dollar is strong. Update: Euro-zone inflation at 0.3%, core falls to 0.7% – EUR/USD confirms break down – reaches 1.2601 Here’s a quick update on technicals, fundamentals and sentiment moving the pair. Asian session: The pair could not hold above 1.27 and fell back down. Current range: 1.2660 to 1.27. Further levels in both directions: Below: 1.2660, 1.2620, 1.2587 and 1.25. Above: 1,27, 1.2750, 1.2820 and 1.2870. 1.2660 is strong support – where the now broken uptrend began. 1.2750 is key resistance, as it was a double bottom in 2013. EUR/USD Fundamentals 6:00 German Retail Sales. Exp. +0.6%. Actual +2.5%. 6:45 French consumer spending for two months: July -0.7%, June +0.7%. 7:55 German Unemployment Change. Exp. -2K. Actual: +12K – quite a disappointment 9:00 Euro-zone CPI. Exp. +0.3%, core exp. +0.9%. 9:00 Euro-zone unemployment rate. Exp. 11.5%. 9:00 Italian CPI. Exp. -0.3%. 13:00 US S&P/CS Composite-20 HPI. Exp. 7.5% y/y. 13;45 US Chicago PMI. Exp. 61.6 points. 14:00 US CB Consumer Confidence. Exp. 92.2 points. * All times are GMT. For more events and lines, see the Euro to dollar forecast. EUR/USD Sentiment Is the lower value of the euro already pushing inflation higher?: This is the key question for the ECB. The euro has weakened significantly since peaking just under 1.40 back in May. At current levels, we might already see the euro-zone CPI rise from rock bottom levels, but perhaps it may take longer. German CPI for September was marginally better than expected. Fed favorite inflation figure remains low: The Core PCE Price Index is the Federal Reserve’s preferred measure of inflation. Despite a rise of 0.1% m/m, the y/y value remains at a weak 1.5%, below the Fed’s target. This provides fuel for the Fed doves. General dollar strength: The US dollar takes only short pauses between its gains, that were most recently inspired by the preparation of Yellen to exit monetary stimulus. A fresh round of dollar buying hit weak currencies such as the kiwi as well as stronger ones such as the pound. While each currency has a story of its own, the general trend is certainly dollar bullish and the euro is not one of the stronger currencies. Draghi ready to act: This is not news, but the comments about being ready to do more, especially after the poor TLTRO, just provided another reason for selling EUR/USD. It is unlikely that the ECB will announce big new measures this week, but more dovish words and more details about the ABS program are now expected, especially if inflation is low. In our latest episode, we talk about Contango vs. Backwardation, Scottish reverberations and key US data: Download it directly here. Subscribe to our podcast on iTunes. Yohay Elam Yohay Elam Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts. Yohay's Google Profile View All Post By Yohay Elam EUR/USD DailyForex News Today: Daily Trading News share Read Next EUR/USD dips to the lowest in 2 years – confirmation Yohay Elam 7 years EUR/USD is back to the lower range, falling down from the short lived bounce above 1.27. This comes despite as German data is decidedly mixed. The focus is on inflation numbers today, which precede the ECB decision on Thursday. Later on, we are due to get a reminder of why the dollar is strong. Update: Euro-zone inflation at 0.3%, core falls to 0.7% - EUR/USD confirms break down - reaches 1.2601 Here's a quick update on technicals, fundamentals and sentiment moving the pair. Asian session: The pair could not hold above 1.27 and fell back down. 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