FX.co ★ EUR/USD under pressure. Traders await US inflation data

EUR/USD

The euro is trading near 1.0660, the lower boundary of the range. Its top-down breakout is possible.

The main event of this week is the report on US consumer prices to be released on Tuesday.

There is a likelihood that the inflation rate may exceed market expectations.

In this case, the US market is expected to intensify the last week's correction.

Thus, the euro will break below 1.0660 and then head towards 1.0500.

How to trade? An aggressive strategy suggests that you can go long at current prices with a view to hitting the target area of 1.0800-1.0900.

If you are a conservative trader, it is worth waiting for the price to slide to the 1.0500 zone before opening long positions.

If inflation turns out to be low, the euro will gain value. In this case, it will be possible to sell the pair at 1.0900 and above.