EUR/USD:SELL From Strong Resistance For A SHORT Setup

Today at 13:30 GMT the US Bureau of Labor Statistics will release the Consumer Price Index (CPI) figures for December and as we get closer to the release time, the forecasts by the economists and researchers of the major banks regarding the upcoming US inflation they show a decline to 6.5% from 7.1% in November and see the Core CPI, which excludes volatile food and energy prices, edging lower to 5.7% from 6%. On a monthly basis, the CPI is forecast to stay unchanged while the Core CPI is projected to rise by 0.3%.

Commerzbank says:

“In the US, inflation is clearly on the retreat. From its peak of 9.1% in June, the YoY rate most recently fell to 7.1% in November. For December, we forecast a further decline to 6.4%. Used car prices are likely to have fallen by almost 3% in December from November. We therefore also expect the Core inflation rate to decrease from 6.0% to 5.6%. This would mean a continuation of the easing in inflation – a trend that should continue in 2023. However, we stand by our assessment that the fundamental inflation problem will not be solved. A sustained return to 2% inflation is likely to be prevented by demographically induced labor shortages, the costs of climate policy, and increasing protectionism.”

Looking at the Technical analysis, the price is still inside an accumulation area where we await a breakout to the bearish side with the price not reaching the 1.0800

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