The euro gradually increased not only due to the ongoing rebound but also largely because of the revised US inflation forecasts. If on Friday it was assumed that the growth rates of consumer prices would accelerate from 3.7% to 3.8%, then over the weekend, the forecast was revised towards a slowdown to 3.3%. And once these expectations are confirmed, the possibility of another increase in interest rates would be ruled out. It will actually be more appropriate to talk about a rate cut. Of course, not in December, but at least early next year. This somewhat changes the market situation and will contribute to the dollar's weakness. Therefore, the euro may continue to rise.
The EUR/USD pair has been moving in a sideways range of 50-70 points for a week. There are no crucial changes, and the quote seems to be in the process of reaching a balance of trading forces.
On the four-hour chart, the RSI technical indicator is moving along the 50 mid line, confirming a price standstill.
The Alligator Indicator on the same time frame has some intersections between the MAs, meaning that the upward cycle is slowing down and a flat is being formed.
Outlook
In this situation, we have two key levels, namely 1.0650, which considers a bearish scenario, and the level of 1.0750. And if the price manages to breach 1.0750, this would suggest an extension of the upward cycle.
Complex indicator analysis provides a mixed signal in the short- and long-term timeframes due to a prolonged trading range.
