Today, the focus of the economic calendar is on preliminary data on inflation in Europe, where it is predicted that consumer prices will rise to the level of 2%.
It is unlikely that the statistics on inflation will help the European currency in any way.
During the last trading day, the EUR/USD currency pair managed to prolong the upward move towards the subsequent resistance level of 1.1900, where there was a reduction in the volume of long positions and as a result, a stagnation occurred - a rollback.
Speculative activity is still growing, as indicated by both technical instruments and the structure of trading candles. The average daily volatility since the beginning of the trading week was 62 points, which is higher than the average level for the EUR/USD currency pair.
Considering the trading chart on the scale of the daily period, it can be noted that the European currency has weakened in value against the US dollar by almost 4% since the beginning of June, which is quite a lot for the foreign exchange market. The current movement is nothing but a correction.
Expectations and prospects
The correction move from the support point of 1.1750 is relevant in the market. But the resistance level of 1.1900 is in the way of buyers, which can negatively affect the volume of long positions, which will lead to a downward movement.
Comprehensive indicator analysis signals a short-term sell signal, while intraday guidance is still focused on the upside.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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