EUR/USD: Political Uncertainty, Looming US CPI Set Stage for Downside Breakout

EUR/USD News

EUR/USD: Political Uncertainty, Looming US CPI Set Stage for Downside Breakout
US Dollar Index Futures
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Forex Analysis by Investing.com (Damian Nowiszewski) covering: EUR/USD, US Dollar Index Futures. Read Investing.com (Damian Nowiszewski)'s latest article on Investing.com

Strong US labor market data, along with political uncertainty in the EZ has put the currency pair under pressure. EUR/USD

But Wednesday isn't just about inflation. It's also"Super Wednesday" – the day the Fed makes its next interest rate decision. While rates are expected to stay put, all eyes will be on the accompanyingThis ambiguity kept the EUR/USD pair relatively stable. Investors are now waiting for next inflation data release, which will be critical for the ECB's next move in the bank's next meeting.

The EUR/USD pair has paused its downward movement near the 1.0740 support zone. While a break below 1.07 could lead to a test of 1.0670, the key target remains the yearly low around 1.06.

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