Inflation in the EU again sets a new historical record of 10.6% in October after 9.9% in September. Given the absence of a slowdown in the rate of inflation, there is an almost accurate signal that the European Central Bank will continue to raise interest rates at the current pace.
The EURUSD pair, after slowing down the upward cycle near the resistance level of 1.0500, initially moved to a technical pullback, and then to a flat. The levels 1.0300 and 1.0500 serve as the main limits of the horizontal range.
The RSI H4 technical instrument, despite the pullback and flat, is moving in the upper area of the 50/70 indicator, which indicates the prevailing bullish mood of market participants.
The moving MA lines on Alligator H4 have a primary intersection, but still the lines are still directed upwards. Thus, the upward mood is confirmed on the Alligator indicator.
Expectations and prospects
In this situation, the quote will continue to move between the two control levels. This move will lead to a regrouping of trading forces, which in turn will become a lever for new speculative price jumps.
The optimal trading strategy is a breakout method, retaining the price beyond a certain control level. As a result, there will be a technical signal about a possible subsequent direction of movement.
Complex indicator analysis in the short-term and intraday periods has a variable signal due to the flat. In the medium term, there is an upward signal, due to the current cycle from the low of the downward trend.
