EUR/USD Awaits U.S. Inflation Data Amid Bearish Setup

EUR/USD is setting up for an eventful session, with the upcoming U.S. inflation data expected to have a strong influence on the dollar and, by extension, this pair. Traders should keep that in mind as volatility could spike when the numbers are released.

From a technical perspective, yesterday’s action saw the price escape from a black pennant formation to the downside, triggering a sell signal. Today, as we enter the European session, the pair is in a bullish correction of that drop. This rebound is confined within a wedge pattern, marked with red lines.

If the price breaks from this wedge to the downside, it would open the way for a fresh sell signal, with the next target set on the pink horizontal support. Until then, the market remains in a waiting phase, with the wedge breakout being the key trigger to watch.

Source: https://www.axiory.com/analytics/technical-analysis/eur-usd-awaits-u-s-inflation-data-amid-bearish-set