EURUSD Forecast: Euro Politics, Trade War and US CPI in focus

The pair tested 1.1400 level yesterday but ended up plummeting to 1.1305, as political turmoil in Europe alongside with a fading momentum in Wall Street benefited the greenback in the American afternoon. The market was in a much better mood with European indexes closing with solid gains amid some relief headlines related to the US-China trade war. Ongoing Brexit uncertainty, Italy budget concerns, soft macroeconomic figures of the Union add weights on Euro.

I was very clear in previous forecasts, all possible upwards attempts would be used as selling opportunities by the USD Bulls.

Today we will have the US CPI figures. The outcome will probably the most important determining factor of the direction of EURUSD.- Valid for XAUUSD as well –

A better than expected numbers set may end the doubts on FED 2019 rate hikes.

Technically:

The pair is still trading in a “directionless zone” symmetrical triangle. This formation is usually a sign of consolidation ahead of another directional move in the main trend.

A clear break below 1.13000, would start a new sell-off in EURUSD. The targets of the pair, lead by a bearish breakout of the triangle, will be 1.12500, 1.12100, 1.11600. and 1.10800.