Last night, after the speech of Fed Chairman Jerome Powell, the US dollar was supported and started to go up. The Fed said the US economy is growing at a steady pace, the situation on the labor market is improving, and so they continue monetary policy tightening cycle.
Today, the following economic events and statistics can affect the dynamics of exchange rates:
At 11:30 (GMT + 3) will be published on the UK inflation for June. It is expected that to grow by 2.6% in annual terms, the consumer price index.
At 12:00 (GMT + 3) out inflation in the euro area in June. It is expected that to grow by 2.0% in annual terms, the consumer price index.
At 17:00 (GMT + 3) will be the speech of Fed Chairman Jerome Powell about US monetary policy before the Financial Services Committee.
At 21:00 (GMT + 3) will be released "Beige Book" - Economic Review Federal Reserve.
Technical outlook EURUSD:
On the four-hour timeframe (H4) EURUSD pair draws fifth wave inside the "descending triangle":
Currently EURUSD moves toward the bottom line of the triangle, which is located near the level of 1.1530.
On the hourly timeframe (H1), in my opinion, has the potential for a "downtrend":
I believe that in the absence of force majeure in the coming days, EURUSD may fall to 1.1550.
At the moment, the EURUSD is trading at 1.16343, which is approximately 80 pips lower than yesterday morning.
Forex forecast and review of Vesselin Petkov Alpari