EURUSD still bullish. Here is why.

Last week's sell off was triggered by the resignation of the French prime minister which was then slowed by the Trump's 100% threat on China. Also in the same week Gaza has agreed to a cease fire deal. This week we expect the US CPI to set the pace for EURUSD. Any higher than expected will confirm that inflation is too hot for a cut. Reports have been emerging that the tariffs have shown close to no effects on the US economy allowing room for disinflationary measures. Therefore, a low than expected CPI will mean the sell off that happened in the past week was just a correction and the 1.18 zone is likely to be tested. Finally if Powell maintains a dovish tone on Tuesday then bulls will hold.