The eurozone inflation report confirmed the results of the preliminary estimate which showed that consumer prices were up from 6.9% to 7.0%. Considering the fact that the market had already taken this into account, the final data could not affect the current situation in any way. Moreover, the single currency even lost its positions. But it was quite modest. And now we see the signs of recovery and attempts to return to yesterday's values. And most likely these attempts will not only be successful, but the single currency will be able to rise a bit higher. The reason for that will be the unemployment claims data in the United States. In fact, the number of both initial and repeated applications may increase by 6,000.
The EUR/USD pair has almost reached the support level of 1.0800. As a result, there is a strong signal of the euro's oversold conditions, reducing the volume of short positions.
On the four-hour chart, the RSI confirms the oversold signal by touching the level of 30.
The Alligator moving averages are headed down in the 4-hour chart, confirming a corrective cycle from the peak of the medium-term trend.
Outlook
In this situation, the 1.0800 level plays the role of support from which a pullback has occurred. In order for the pair to fall further, it needs to stay below this level for at least a four-hour period. Otherwise, the euro could recover, leading to the end of the corrective movement.
In terms of complex indicator analysis, the price is retracing up in the short term. Indicators also show a corrective move intraday.
