EUR/USD Forms Bullish Flag Pattern Ahead of Inflation Data

The EUR/USD pair has been relatively unchanged in recent days, hovering around 1.1542, just below its monthly high of 1.1580. However, technical analysis suggests that a bullish flag pattern is forming, which could lead to a breakout and a target price of 1.1650.

The pair's current sideways movement may come to an end with the release of key inflation data from Germany, Italy, and the US. The European Central Bank (ECB) will be keeping a close eye on these numbers as it prepares its next rate decision. In the US, the Consumer Price Index (CPI) report is also expected to provide insight into the impact of recent geopolitical tensions on inflation.

The EUR/USD pair has been in a consolidation phase since the Federal Reserve's interest rate decision and the release of the June Personal Consumption Expenditure (PCE) report. The 50-day moving average has been breached, indicating a potential bullish breakout.