**EUR/USD ANALYSIS**
***Fundamental analysis*** Price is in a neat uptrend and it has been for a while now, but we had a very interesting inflation data last week in the US, which came out hotter then expected, for a few months now, the downward trajectory of Inflation in the US seemed to have bottomed out at 3.1%, will we see another inflation rally?
That would mean the FED has to rethink their rates cut plan for 2024 and maybe postpone them for a few months.
Let’s see what Powell will tell us about the latest market data, one thing is sure tho, they did not like the last inflation reading.
***Technical Analysis*** The demand zone in the gray box at around 1.0820 is an excellent area to look for first signs of bullish reaction to take price to close the imbalance left behind at 1.1000 level, after that I think bears will take control of the market pushing the price below the local lows.
As said, fundamentally we may see a stronger dollar in the next few weeks, and technically, s you can see in the chart below, we had an almost IDENTICAL price action a few weeks ago and in that instance price ended up creating a new high.
I strongly believe price action patterns rarely play out in the exact same way twice in a row.
The bearish imbalance created shows strong momentum for the sellers, they will most likely take control for the next few weeks.
@everyone
***Fundamental analysis*** Price is in a neat uptrend and it has been for a while now, but we had a very interesting inflation data last week in the US, which came out hotter then expected, for a few months now, the downward trajectory of Inflation in the US seemed to have bottomed out at 3.1%, will we see another inflation rally?
That would mean the FED has to rethink their rates cut plan for 2024 and maybe postpone them for a few months.
Let’s see what Powell will tell us about the latest market data, one thing is sure tho, they did not like the last inflation reading.
***Technical Analysis*** The demand zone in the gray box at around 1.0820 is an excellent area to look for first signs of bullish reaction to take price to close the imbalance left behind at 1.1000 level, after that I think bears will take control of the market pushing the price below the local lows.
As said, fundamentally we may see a stronger dollar in the next few weeks, and technically, s you can see in the chart below, we had an almost IDENTICAL price action a few weeks ago and in that instance price ended up creating a new high.
I strongly believe price action patterns rarely play out in the exact same way twice in a row.
The bearish imbalance created shows strong momentum for the sellers, they will most likely take control for the next few weeks.
@everyone