EUR/USD Eyes Upside Potential Amid Inflation Speculations

EUR/USD Eyes upside

Inflation data is awaited amidst EUR/USD pair value fluctuation, If the inflation result is positive, the US dollar will weaken, and EUR/USD will face an uplift. Economic indicators suggest potential rate cuts in 2024. 

The EUR/USD pair is at a critical point, waiting for inflation data. If the US dollar weakens due to positive inflation news, it aligns with a positive outlook for EUR/USD. The analysis uses charts and critical levels, referring to an education library for more details.

In Q3, inflation held up, but if it drops, it might lead to more USD selling. Last week’s job stats hinted at a softer economy, making the market think the Fed might cut rates in 2024.

A potential inflation drop could impact the dollar, which is still doing well. The EUR/USD positive view depends on data, significantly lower US CPI, suggesting a possible peak in US rates. However, recent GDP data shows the euro isn’t very strong.

EUR/USD has gone up and reached a resistance point easily. Daily candle patterns show rejection of lower prices, but we need confirmation with a daily close. Immediate support is at 1.0700, setting up for another breakout attempt. If it returns to channel support, it might invalidate or delay the trade. The target on the upside is 1.0831.

Looking ahead, important events include the second EU GDP estimate. The euro’s stability depends on this data, especially after recent positive moves in EUR/USD. US inflation is crucial too; if it falls short, markets might expect rate cuts. It all depends on the actual inflation data and how the market reacts.

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Daniel Martin
Daniel Martin is a highly accomplished forex trader from the United States. He has over 15 years of experience, and has gained a reputation for his exceptional insights and consistent profitability in the foreign exchange market. Born and brought up in New York, Daniel holds a degree in Economics and has a deep understanding of market dynamics. He is known for his disciplined approach, ability to interpret market patterns, and expertise in various trading strategies. Daniel actively shares his knowledge through articles, webinars, and seminars, and is committed to promoting ethical trading practices. With his passion and extensive experience, he continues to guide individuals towards financial success in the dynamic world of forex trading.