FX.co ★ EUR/USD: market awaits new driver

EUR/USD

The EUR/USD pair unexpectedly got stuck in a tight range. Prior to that, the price gained strong upside momentum, and it seemed like the market had chosen a direction.

Data showed yesterday that the euro area inflation rate was 5.5% in June 2023, down from 6.1% a month earlier. Wheareas the core inflation rate inched up slightly to 5.5% from 5.3%.

Nevertheless, traders shrugged off this data, with the EUR/USD pair remaining almost unchanged.

Perhaps today's data on US weekly jobless claims will help the EUR/USD pair get out of the sideways range.

From a technical point of view, long-term consolidation in a tight range near highs signals a potential new surge toward the 1.1300 mark. At the same time, it may also indicate that the uptrend is nearing its end.