EUR/USD found support at 1.0775 ahead of the Euro area's inflation data due out this week. Most likely, inflation will decrease by 7.5%, which will calm the ECB and postpone the planned increase of rates at the May meeting. But if a rate hike still happens, euro will continue to weaken against the US dollar.
Technical picture:
EUR/USD is below the middle line of the Bollinger indicator, above SMA 5, but below SMA 14. The relative strength index (RSI) is below 50% and is moving horizontally. Meanwhile, the stochastic indicator is turning over the oversold zone.
Possible dynamics:
EUR/USD may bounce back. After reaching 1.0830, it may turn down and rush to 1.0685.
