Of course, the market is eagerly awaiting tomorrow as Federal Reserve officials will start monetary policy deliberations, but today will not be boring, as the US inflation data is scheduled for release, which is of great importance for the policy of the US central bank. Moreover, the pace of consumer price growth is expected to slow down from 4.9% to 4.3%. Of course, this does not mean that the Fed will lower the federal funds rate tomorrow, but there will almost certainly be statements about a gradual stabilization of inflation. There may even be hints of a rate cut before the arrival of autumn. So, inflation data should be the cause of the start of a fairly prolonged and significant correction. After all, the dollar is still significantly overbought.
The temporary pause in the EUR/USD pair led to an increase in the volume of long positions. As a result, the exchange rate resumed its growth, indicating a process of euro recovery from the recent correction.
On the four-hour chart, the RSI technical indicator is hovering in the upper area, which points to the bullish sentiment.
On the same time frame, the Alligator's MAs are headed upwards, which corresponds to the end of the corrective phase.
Outlook
Keeping the exchange rate above the 1.0800 level may indicate further growth in the volume of long positions. This, in turn, will lead to further recovery in the euro exchange rate.
The complex indicator analysis unveiled that in the short-term and intraday periods, indicators are providing an upward signal.
