EUR/USD Under Pressure After Disappointing Inflation Data from France and Spain
27 September 2024
The recent inflation data from France and Spain has created significant pressure on the Euro, which is reacting with a sharp decline against major currencies. One notable setup is on the EUR/USD pair, the most popular instrument for trading the Euro on the forex market. The pair recently experienced a false breakout above the key resistance level just below 1.12, marked in blue on the chart. This false breakout, highlighted by the orange rectangle, sets a bearish tone for the pair.
With today’s disappointing inflation figures further fueling this sentiment, we see a continuation of the decline. The immediate target for this bearish movement is the green uptrend line, which lies around 30 pips below the current level. This presents a compelling short-term selling opportunity. If the price breaks below this green uptrend support, it would signal a major bearish shift, potentially opening the path for a more extended decline in the coming sessions. Traders should watch closely for a break of this support, as it could indicate a stronger downward trend in the near term.