The Final eurozone PMIs, along with the Composite PMI, matched the flash estimates, so they didn't bring anything new to the table. This made it easy for the pair to start a minor rebound, and it appears that we will see a continuation of it today. The reason behind this could be the eurozone Producer Price Index data. The pace of its decline is expected to accelerate from -11.5% to -12.6%. This suggests that inflation will continue to decline, further increasing the likelihood of a European Central Bank interest rate cut, and likely in the near future. This will serve as a reason to continue the corrective movement that started yesterday.
The volume of long positions for the EUR/USD pair decreased around the 1.0750 level. This interrupted the upward momentum, and a pullback followed.
On the four-hour chart, the RSI shows that the pair has left the overbought territory, consistent with a pullback phase.
On the same time frame, the Alligator's MAs are directed upwards. However, on the 15M, 30M, and 1H timeframes, the lines are pointing downwards, indicating a pullback phase.
Outlook
If the pair continues to retreat, it is possible for the euro to fall further towards the 1.0650-1.0620 range. The bullish scenario will come into play in case the price settles above the 1.0750 level.
The complex indicator analysis unveiled that in the short-term and intraday periods, indicators are pointing to a pullback phase.
