EUR/USD Is Pressuring The Monthly Low And Poised To Extend Its Decline

EUR/USD Current Price: 1.1781

• US inflation was upwardly revised to 5.4% YoY in June, higher than expected.
• The focus shifts to US Federal Reserve chief Jerome Powell’s testimony before Congress.
• EUR/USD is pressuring the monthly low and poised to extend its decline.

The EUR/USD pair trades near a daily low at 1.1780, a fresh multi-month low. The pair fell ahead of Wall Street’s opening, as the dollar got boosted by US inflation data. The Consumer Price Index was upwardly revised in June to 5.4% YoY, much higher than the expected 4.9%. The core reading was also upwardly revised from 3.8% to 4.5%. Germany also published its June inflation figures, with the annual Consumer Price Index confirmed at 2.3%. The figures revived speculation about a tighter monetary policy coming sooner than anticipated in the US.

Germany also published its June inflation figures, with the annual Consumer Price Index confirmed at 2.3%, failing to influence prices. On Wednesday, the EU will publish May Industrial Production, while in the US, Federal Reserve chief Jerome Powell will testify on the Semi-Annual Monetary Policy Report before the House Financial Services Committee and will try to convince Congressmen about the need of maintaining facilities despite the economic progress.

EUR/USD Short-Term Technical Outlook

Technically speaking, the bearish potential for the EUR/USD pair has increased. The 4-hour chart shows that the pair accelerated its slide after breaking below its 20 SMA, which has gyrated south. Meanwhile, technical indicators head firmly lower near oversold readings, reflecting strong selling interest. A breakthrough the daily low should favor a bearish continuation toward the 1.1700 price zone.

Support levels: 1.1780 1.1735 1.1690

Resistance levels: 1.1835 1.1880 1.1920  

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