The EUR/USD pair rebounded sharply last Friday, managing to reach; cancel the losses of the previous days.
Recall that after having been penalized by a strengthening of the Dollar last Thursday against the ADP report (EPA:ADP) on private employment; US significantly higher than expected, EUR/USD benefited from Friday of the NFP report, which on its side revealed job creations below the consensus.
The US CPI could have a determining impact on the course of the Euro Dollar this week
While this did not cast doubt on the prospect of a rate hike on July 26, with the Investing.com Fed Barometer still pointing to the likelihood of a rate hike. more than 90% that the Fed raised its rate by 0.25% on July 26, this reduced the chances that the central bank would go further afterwards.
In this context, the EUR/USD has displayed a rally of relief until’" a vertex at; 1.0975, at compare to a hollow at 1.0833 the day before.
With regard to the next events likely to influence the course of the Euro Dollar, this day of Monday will be especially marked by some interventions of members of the Fed, with Daly, Mester and Bostic at ; 4:30 p.m., 5 p.m. and 6 p.m.
>> Find all the important EUR/USD statistics and real-time results on the Investing.com Economic Calendar.
Tomorrow Tuesday will then be centered on the German ZEW Business Climate Index. However, we will have to wait until Wednesday for the most important statistic of the week, with the US CPI for June.
Inflation that exceeds expectations could fuel speculation on many new rate hikes after the one in July, which would benefit the Dollar and penalize the EUR/USD pair.
Technical thresholds at; monitor on EUR/USD
From a graphical point of view, it will be noted that the EUR/USD rally last Friday led to the currency pair touching the falling trend line that has been stretching since the beginning of May on a daily basis.
Currently at; 1.0970, this line is the first hurdle on the Euro's upward path. Above, we will mention the major psychological threshold of 1.10 and the top of June 22 at; 1.1012, ahead of this year's peak at 1.1095.
If, on the contrary, the EUR/USD falls, the threshold of 1.09, then that of 1.0835 (100-day MA) will be the first supports to be reached. watch.
EUR/USD faces major hurdles ahead of key US inflation test 1