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EURUSD holds above key Fibo support as markets await US inflation data
EURUSD is consolidating near a 3.5-month high around 1.1711, with the next catalysts including the US July PCE Index and Fed Chief Warsh’s Jackson Hole speech.
EURUSD is in an extended consolidation phase while holding above a broken Fibo barrier at 1.1648, a level that keeps a bullish bias intact despite earlier negative candle signals with long upper shadows, according to Action Forex.
The analysis points to bullish technical momentum, including multiple moving-average bull crosses and converged 10 and 200 day moving averages that are on track to form a golden cross, with dips ideally staying above 1.1648 and not dropping below the 200DMA near 1.1627.
Traders are now looking to upcoming US data and central bank commentary, with the US July PCE Index closely watched as a key input for Fed expectations, alongside Friday’s speech by Fed Chief Warsh at the Jackson Hole Symposium.
If inflation prints softer, the report says the euro could benefit with a dovish tilt from the Fed, while higher than expected July numbers could strengthen the US dollar; upside targets cited include 1.1725 and the 1.1800 zone.