EUR/USD on Brink of Breakout Amid ECB Interest Rate Decision and US Inflation Data
The EUR/USD pair has been trading in a tight range of late, but market participants expect key macro events to break it out. The European Central Bank (ECB) interest rate decision and US inflation data are among the crucial events scheduled for this week.
Economists anticipate that the ECB will hike interest rates by 25 basis points as it battles elevated inflation above the 2% target. This comes three days after Eurostat published the latest Eurozone GDP data, which showed a 0.6% growth in the second quarter.
The four-hour chart of the EUR/USD pair shows a symmetrical triangle pattern forming, with two lines nearing their confluence level. It has moved slightly above the 50-period Exponential Moving Average (EMA), while the Percentage Price Oscillator (PPO) has moved above the zero line.