Today will be releasing an important data on inflation by which the Federal Reserve headed by Janet Yellen along with a number of representatives seriously focused on.

During the two-day testimony of the Fed Chair, she repeatedly drew attention to the low inflationary background which slowed down significantly in the second quarter, along with economic growth.

The President of the Federal Reserve Bank of Dallas Robert Kaplan made a speech during the Asian session today, he mentioned that it necessary to wait for the inflation to accelerate prior the increase on interest rates.

The representatives of the Federal Reserve also focused on the fact that the committee will achieved significant progress when it comes to employment and inflation and the US economy is close to full employment.

With regards to the reduction of balance sheet, Kaplan and his colleagues expects the reduction will begin this year.

As mentioned earlier, the current inflation data will provide substantial support to the US dollar if it exceeds economists' forecasts.

The progressive growth in consumer prices will ease the tension in the ranks of Fed representatives and will also allow investors and traders to expect a further increase in US interest rates which will make the dollar more attractive.

According to the technical picture of the EURUSD pair, the market is currently on the side of the euro sellers and the positive US data will only push traders to close long positions in the euro.

Once the data came in worse than economists' forecasts, moving beyond the resistance level 1.1420 is a good opportunity to further establish long positions in euros. pward trend towards 1.1560 and 1.1630.