EUR/USD Forecast: US Inflation Data to Drive Market Sentiment, Breakdown in Play

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This article examines the fundamental and technical outlook for EUR/USD ahead of Tuesday’s U.S. inflation data, analyzing potential scenarios that could unfold in the near term.

Monday’s price action was unimpressive, as many traders remained on the sidelines, waiting for new catalysts that could spark more meaningful moves. Tuesday, however, promises a shift, with the potential for increased volatility in the FX markets, driven by the anticipated release of U.S. inflation data.

Eager to discover what the future holds for the euro? Delve into our Q1 trading forecast for expert insights. Get your free copy now!If progress in disinflation stalls or proceeds less favorably than anticipated, the Fed may be inclined to delay the start of its easing cycle, propelling U.S. yields higher. This could reinforce the U.S. dollar’s rebound witnessed in 2024, creating a hostile environment for the euro.

EUR/USD pushed towards resistance at 1.0785 on Monday, but then reversed course. If this bearish rejection is confirmed in the coming days, sellers could spark a move towards 1.0720. The pair may find stability in this area before rebounding, but a breakdown would put the 1.0650 level squarely in focus.

 

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Fonte: FXStreetNews - 🏆 14. / 72 Consulte Mais informação »