Yesterday, the euro closed the day with a 14-pip decline. The price spent much of the time trying to overcome the balance line on the daily chart, so the support at 1.1632 was only reached this morning.
Consolidation below this support opens the way to the next target at 1.1495 – the June 5 high. The Marlin oscillator has settled in negative territory and is helping the price in its immediate task of securing a move below 1.1632.
On the H4 chart, the price consolidated below both the balance and MACD indicator lines, while Marlin remains in negative territory. However, since the price is now at target support, some minor consolidation at this level is possible.
Today, euro area CPI data for July will be released, with forecasts unchanged: 2.0% y/y for the headline index and 2.3% y/y for core inflation.
