What next for the EURUSD?
The Euro had been trading lower strongly until it approached the parity level (1.00), then the decline stalled.
As the US CPI data was released, indicating inflation at a 40 year high of 9.1%, the EURUSD briefly pierced below parity. But this move reversed sharply, with price shooting to 1.010.
Whilst price is likely to continue trading within this range, further downside is still expected, but volatility will be high.
A stronger correction towards 1.015 or even 1.020 might need to happen before a resumption of the downtrend could continue.
The Euro had been trading lower strongly until it approached the parity level (1.00), then the decline stalled.
As the US CPI data was released, indicating inflation at a 40 year high of 9.1%, the EURUSD briefly pierced below parity. But this move reversed sharply, with price shooting to 1.010.
Whilst price is likely to continue trading within this range, further downside is still expected, but volatility will be high.
A stronger correction towards 1.015 or even 1.020 might need to happen before a resumption of the downtrend could continue.
Free trading community: discord.gg/kPDXU2ZaDt