EURUSD Testing Wedge Support Ahead of US PCE
Markets are slow this week, with EURUSD coming slightly down despite higher US stocks yesterday. Most of the majors are sideways ahead of the next very important week full of data. However, we can see some volatility later today, for the US PCE inflation report, with yoy 4.4% forecast. If data comes around expectations or even lower, then USD can see some weakness, but maybe not that much since we know what FED plans to do, and that a lot dollar weakness it's already priced in. But on the other hand, if data suddenly disappoints then a reaction in the favour of the buck can be much more aggressive, especially after a CPI jump in Australia reported earlier this week.
From an Elliott wave perspective, we see EURUSD wedge that can be the opposite signal so we are aware of a turn south, but ideal timing for a break can be next week with some CB policy announcements.
On the date of publication, Gregor Horvat did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
