EUR/USD major begins the main week of December with a minor decline at 1.0520. All the week's key events are focused on the days to come.
On Tuesday, the US will issue the November CPI. Inflation is supposed to have dropped to 7.3% y/y from 7.7% previously. If so, this will increase volatility before the Federal Reserve System announces the decision on Wednesday.
If inflation is indeed retracting, the Fed my go by the market expectations raising the interest rate by 50 base points at once. However, if inflation statistics give some signals to worry about, the Fed will act as it is used to, increasing the crediting price by 75 base points like before.
Anticipating these events, the market will be in standby mode. On H4, the pair is forming a wide consolidation range around 1.0510. The correction may continue to 1.0430.
After it is over, one more growth structure may develop to 1.0660. Technically, this scenario is confirmed by the MACD. Its signal line is headed down, which means a continuation of the corrective wave.
On H1, the pair completed an impulse of decline to 1.0510 and a correction to 1.0557. Today the market is forming a structure of a declining impulse to 1.0430. Technically, the scenario is confirmed by the Stochastic oscillator. Its signal line is above 50, preparing to develop a new decline link to 20.
Disclaimer: Any forecasts contained herein are based on the author's opinion. This analysis may not be treated as trading advice. RoboForex bears no responsibility for trading results based on trading recommendations and reviews contained herein.
