Forex
EUR/USD Pulls Back as Pivotal Support Approaches
The EUR/USD pair has pulled back after a 3.1% rally from the July low exhausted at a major retracement zone last week, but the broader July advance remains intact for now.
Price is quickly approaching pivotal support at the lower bounds of the uptrend, and a deeper break would increase the risk that a more significant high is in place.
The Eurozone inflation report on Tuesday will offer the first major test for EUR/USD as markets assess the outlook for ECB policy, with key U.S. labor market data following closely afterwards.