EURUSD Under Pressure After Hot CPI – More Downside Ahead?Today, the US released key inflation figures :
Core CPI m/m: 0.2% (vs 0.3% forecast)
CPI m/m: 0.3% (as expected)
CPI y/y: 2.7% (vs 2.6% forecast, up from 2.4%)
Fundamental Analysis ( EURUSD ):
The slightly lower Core CPI suggests some easing in underlying inflation pressures. However, the headline CPI y/y came in hotter than expected at 2.7%, reinforcing the idea that the Fed is not yet ready to ease policy aggressively.
This combination supports the US dollar, as sticky inflation could delay rate cuts.
EURUSD is likely to remain under pressure in the short term unless the ECB signals a more hawkish stance or US data starts showing broader weakness.
Now let's move on to the technical analysis of EURUSD ( FX:EURUSD ) on the 4-hour timeframe .
EURUSD is trading in a Heavy Resistance zone($1.1802-$1.1602) , having simultaneously managed to break the Support lines and the lower line of the Descending Channel , and is also trying to break the Support zone($1.1642-$1.1578) .
I expect EURUSD to continue its downtrend and decline to the Support zone($1.1549-$1.1520) at the first target .
Second target : $1.15043
Third target : $1.1464
Note: Stop Loss(SL)= $1.1660
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Euro/U.S. Dollar Analyze (EURUSD), 1-hour time frame.
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