This week will be particularly important for the EUR/USD for two reasons.
Firstly, we will have data on inflation in the US, which is expected to provide new insights into whether there is (or isn't) room for further interest rate hikes on the Fed's side.
Furthermore, on Thursday, the ECB will announce its decision on interest rates.
The EUR/USD pair is expected to experience periods of higher volatility in these two days of the week. When analyzing the currency pair through technical analysis, we can see that the selling pressure continues, and the price is still trading within an expansive channel, which could lead to further declines.
However, if buying strength resumes and there is a breakthrough above the 1.077 mark, then the pair may begin to recover some of its recent losses.
1 hour time frame chart. Source: xStation 5
Henrique Tomé,
Analyst Portugal
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