In Thursday's European trading session, the EUR/USD pair traded steadily and fluctuated within a narrow range near the 1.0750 level. The pair is facing consolidation of bearish pressures, particularly after the release of US CPI data, prompting traders to be cautious in placing bets ahead of ECB policy announcements.
From a technical perspective, on the 4-hour chart, EUR/USD continues to exhibit downward prospects as prices maintain below the simple moving average (SMA), a clear signal of the strength of the bearish trend.
However, despite the current downtrend, there are signs indicating a potential rebound. This is illustrated by the relative strength index (RSI) decreasing close to the oversold level at 32, suggesting the possibility of a bullish correction for EUR/USD in the near future.