Today's session is marked by the recovery of the risk-on sentiment in the markets, despite the initial drops in equities during the European session.
In the forex market, the pair EUR/USD continues to consolidate, after the strong drops registered after the publication of the CPI data in the US.
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1 hour Time Frame Chart
On the 1-hour chart, we can see that the price is still sideways after the last big drop recorded.
However, it is possible to limit the movements through the chart pattern - expanding channel.
As such, the upper bound of the structure could be the next obstacle to short-term buying force and could dictate new bearish momentum if sellers manage to regain control of the price.
EUR/USD, 1 hour time frame chart. Source: xStation
EUR/USD, Daily Time Frame Chart. Source: xStation 5
During this session, EUR is leading the gains.
Heatmap. Source: xStation 5
Henrique Tomé, XTB Portugal
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