EURO BRACES FOR U.S INFLATION DATA RELEASE

The EURUSD pair is holding above the 1.1400 level, as financial markets brace themselves for the upcoming release of U.S CPI data, and the possible ramifications for the U.S dollar, if June inflation comes in weaker than forecasted.

Should we see CPI data come in weaker than expected, the U.S dollar will likely come under strong selling pressure, as the chances of a rate hike at the next Federal Reserve meeting are greatly reduced.

Weaker than expected U.S data should boost the EURUSD pair towards key resistance at 1.1458, and then possibly move to test the yearly price at 1.1489.

Above the 1.1489 level, the most relevant technical resistance is found at 1.1529 and 1.1613.

Better than expected U.S data may weaken the EURUSD pair beneath the 1.1400 level. Key technical support below the 1.1400 level is found at 1.1370, 1.1357 and the monthly pivot point, at 1.1330.