31 July EURUSD Technical Forecast: The pennant pattern extends


The EURUSD continues to gyrate 1.17 with volatility, as represented by narrowing Bollinger Bands, hovering at 21-month lows. What next could traders expect? Get updated in the following 31 July EURUSD Technical Forecast.

31 July, GKFX – The Eurozone preliminary consumer price index (CPI), scheduled for release at 06:00 GMT, is expected to show the cost of living rose 2 percent year-on-year in July. The core CPI is seen rising 1 percent.

Meanwhile, across the pond, the Fed’s preferred measure of inflation – the core personal consumption expenditure (PCE) price index – is seen rising 2 percent.

Inflation readings in the Eurozone and US 

An above-forecast Eurozone CPI could put a strong bid under the EURUSD. However, the gains would be sustained only if the core PCE, scheduled at 12:30 GMT, prints below estimates.

On the other hand, the EURUSD could begin the journey toward the pennant support of 1.1601 if the Eurozone CPI misses estimates and the US core PCE strengthens the case of faster Fed rate hikes.

The Eurozone Q2 GDP reading, also due at 09:00 GMT and the US personal spending and income numbers, due at 12:30 GMT, could also influence the pair.

31 July EURUSD Technical Forecast

Resistance: 1.1731 (pennant resistance), 1.1791 (July 6 high), 1.1852 (June 14 high).

Support: 1.1675 (50-day moving average), 1.1620 (lower Bollinger Band as per the daily chart), 1.1508 (June 21 low).

Disclaimer

This article 31 July EURUSD Technical Forecast was written by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.

If such information is acted upon by you, then this should be solely at your discretion, and GKFX will not be held accountable in any way.

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