EUR/USD Under Pressure After Disappointing Inflation Data from France and Spain

The recent inflation data from France and Spain has created significant pressure on the Euro, which is reacting with a sharp decline against major currencies. One notable setup is on the EUR/USD pair, the most popular instrument for trading the Euro on the forex market. The pair recently experienced a false breakout above the key resistance level just below 1.12, marked in blue on the chart. This false breakout, highlighted by the orange rectangle, sets a bearish tone for the pair.

With today’s disappointing inflation figures further fueling this sentiment, we see a continuation of the decline. The immediate target for this bearish movement is the green uptrend line, which lies around 30 pips below the current level. This presents a compelling short-term selling opportunity. If the price breaks below this green uptrend support, it would signal a major bearish shift, potentially opening the path for a more extended decline in the coming sessions. Traders should watch closely for a break of this support, as it could indicate a stronger downward trend in the near term.

Source: https://www.axiory.com/analytics/technical-analysis/eur-usd-under-pressure-after-disappointing-inflati