- The flag pattern heralded more declines.
- Removing current support levels triggers more declines.
- Tomorrow, US retail should have a significant impact.
The EUR/USD price has declined again, trading around the psychological level of 1.0700 at the time of writing. The dollar dominates the currency market after US inflation data beat expectations.
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The consumer price index m/m registered a 0.3% increase in January, surpassing the 0.2% increase in December. The CPI was 3.1% year-on-year above the predicted 2.9%, while the Core CPI rose by 0.4%, exceeding the estimated growth of 0.3%.
The currency pair fell like a rock after inflation, ignoring Eurozone data. German ZEV Economic Sentiment and Eurozone ZEV Economic Sentiment were better than expected.
Eurozone industrial production rose 2.6% today, even as traders expected a 0.2% decline, while Flash GDP and Flash Employment Change matched expectations.
Tomorrow US Retail Sales, Core Retail Sales, Empire State Manufacturing Index, Philly Fed Manufacturing Index, Capacity Utilization Rate and Industrial Production should move rate.
Technical analysis of EUR/USD price: Support at 1.0694
From a technical point of view, the EUR/USD price failed to stay above the psychological level of 1.0800 in the last attempt. Now it has extended its downward movement.
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The flag pattern was seen as a continuation of the bearish pattern. Staying on a small uptrend line announced an imminent breakdown and continuation.
It broke the historical level of 1.0723 and is about to reach the weekly S1 (1.0694) and the midline of the main descending fork (ML). They represent potential downside targets and obstacles, so it remains to be seen how they will react around these support levels. Removing these levels activates more declines.
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