Apparently, yesterday morning, we saw a rehearsal of what should happen today. In theory, yesterday we should have observed some kind of stagnation, since the macroeconomic calendar was absolutely empty, and the US inflation report will be published today, so it would be logical to observe just a pronounced sideways movement. Investors will clearly be cautious and avoid sharp movements on the eve of the release of some rather significant data. Nevertheless, the trading day began with a slight decline from the euro. The single currency has returned to its original values since the US session opened. So, today's report should show a slowdown in inflation in the United States from 5.0% to 4.9%. This will mean that, in all likelihood, the rise in inflation was really temporary, and therefore cannot threaten the economic recovery. Naturally, this is an extremely positive factor. Positive for the dollar, of course. It is for this reason that we can say that yesterday we saw something like a rehearsal. Another thing is that the scale of the euro's decline will be somewhat larger today than yesterday. And without a subsequent return to the original values.
Inflation (United States):
The EURUSD pair ended the last trading day at the stage of price stagnation, where the 1.1880/1.1895 area plays the role of a resistance area.
Market dynamics show signs of slowing down, but this is only a local manifestation of the market, as the ratio of speculative transactions continues to grow.
The same price stagnation is visible in the quote's current position, which has the boundaries of 1.1845/1.1880.
In this situation, we can assume that the resistance area will continue to put pressure on the bulls, which may well lead to a recovery process in relation to a correction. A sell signal can be found when the price stays below 1.1840 for a four-hour period.
From the point of view of complex indicator analysis, we see that technical instruments on the minute and hour periods have a variable signal due to the price movement in the stagnation stage.