EUR/USD bulls eye move to 1.09
Updated
The euro has posted a solid rally from its June low. A small consolidation formed above the 200-day averages, and momentum is turning higher.
With US data rolling over and the likelihood that the ECB are in no position to signal a cut next week, the path of least resistance could be higher for the euro. Today's US inflation report is a key event for the pair, where we suspect core inflation could surprise to the downside to weaken the US dollar and support EUR/USD.
Dips towards 1.0806 / 1.0820 seem favourable for bulls seeking a swing trade long. 1.0880 is the initial target near a weekly VPOC and 1-day implied volatility band.
With US data rolling over and the likelihood that the ECB are in no position to signal a cut next week, the path of least resistance could be higher for the euro. Today's US inflation report is a key event for the pair, where we suspect core inflation could surprise to the downside to weaken the US dollar and support EUR/USD.
Dips towards 1.0806 / 1.0820 seem favourable for bulls seeking a swing trade long. 1.0880 is the initial target near a weekly VPOC and 1-day implied volatility band.
Trade closed: target reached
A textbook breakout from a continuation saw EUR/USD rise to our 1.09 target after US CPI data was released.
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