EURUSD Consolidation Continues Ahead of Key US Inflation Data
The EURUSD currency pair remains in an extended consolidation phase, holding above the broken Fibonacci barrier at 1.1648 (61.8% of 1.1849/1.1324 descend). This maintains a bullish bias and keeps the upside in focus for potential targets.
Multiple moving average (MA) bull-crosses and converged 10/200DMA are underpinning the action, indicating strong positive momentum. These technical indicators suggest that dips should ideally hold above the Fibonacci support at 1.1648 to mark a healthy correction before larger bulls regain full control for fresh extension higher.
The release of US July PCE Index and the speech of Fed Chief Warsh in Jackson Hole Symposium are key events today, which may provide more details about the Federal Reserve's policy trajectory in the near term. The single currency would benefit from softer inflation numbers and a dovish stance of the central bank.