Affiliate Disclosure
Affiliate Disclosure adheres to strict guidelines to preserve editorial integrity to help you make decisions with confidence. Some of the reviews and content we feature on this site are supported by affiliate partnerships from which this website may receive money. This may impact how, where and which companies / services we review and write about. Our team of experts work to continually re-evaluate the reviews and information we provide on all the top Forex / CFD brokerages featured here. Our research focuses heavily on the broker’s custody of client deposits and the breadth of its client offering. Safety is evaluated by quality and length of the broker's track record, plus the scope of regulatory standing. Major factors in determining the quality of a broker’s offer include the cost of trading, the range of instruments available to trade, and general ease of use regarding execution and market information.

EUR/USD Forex Signal: Analysis Ahead of US Inflation Data

Bullish view

  • Buy the EUR/USD pair and set a take-profit at 1.0870.
  • Add a stop-loss at 1.0800.
  • Timeline: 1-2 days.

Bearish view

  • Set a sell-stop at 1.0815 and a take-profit at 1.0750.
  • Add a stop-loss at 1.0900.

EUR/USD Signal Today - 11/07: Ahead of US Inflation (Chart)

The EUR/USD pair remained in a consolidation phase on Thursday morning as the focus shifted to the upcoming German and US inflation data. It was trading at 1.0820, a few points below this month’s high of 1.0845.

US inflation data

The EUR/USD exchange rate will likely show some volatility on Thursday as Germany and the US publish their June inflation data.

Based on the preliminary figure, analysts expect the data to show that consumer prices in Germany dropped from 2.4% in May to 2.2% in June. The harmonised inflation figure is expected to drop from 2.8% to 2.5%.

These numbers will confirm that European inflation continued dropping in June, which is a positive move for the European Central Bank (ECB). The ECB has already delivered one rate cut and hinted that more are coming later this year.

Top Forex Brokers

    The most important data to watch on Thursday will be the US inflation report. Economists polled by Reuters expect that the country’s inflation rose from 0.0% in May to 0.1% in June. On an annualised basis, the figure is expected to have moved from 3.3% to 3.2%.

    The core CPI, which excludes the volatile food and energy prices, is expected to come in at 3.4%. If these numbers are correct, they will mean that inflation has become stubbornly high and is struggling to move to the Federal Reserve’s target of 2.0%.

    These numbers will come after this week’s testimony by Jerome Powell, the head of the Federal Reserve. In it, he expressed openness to cut interest rates but only if inflation continued falling.

    Economists believe that the Fed will start cutting either in the September of December meeting. It will have to decide on whether to focus on lowering inflation or preventing a hard landing.

    EUR/USD technical analysis

    The EUR/USD exchange rate has moved sideways in the past few days as traders waited for the upcoming US inflation data. On the 4H chart, it has remained above the Woodie pivot point and is between the 50% and 61.8% Fibonacci Retracement point.

    The pair has also found support at the 50-period and 25-period Exponential Moving Averages (EMA). However, the two lines of the MACD indicator have formed a bearish crossover, which is a bearish sign.

    Therefore, the pair’s outlook is neutral with the key support and resistance levels to watch being at 1.0750 and 1.0872 (1R of Woodie pivot point).

    Ready to trade our free trading signals? We’ve made a list of the best European brokers to trade with worth using. 

    Crispus Nyaga
    About Crispus Nyaga
    Crispus Nyaga is a financial analyst, coach, and trader with more than 8 years in the industry. He has worked for leading companies like ATFX, easyMarkets, and OctaFx. Further, he has published widely in platforms like SeekingAlpha, Investing Cube,, and Invezz. In his free time, he likes watching golf and spending time with his wife and child.

    Most Visited Forex Broker Reviews