US Consumer Price Index

EUR/USD traded near 1.1630 as markets looked ahead to the European Central Bank’s rate decision and key US inflation releases. Technical traders continue to watch 1.1715 on the upside and 1.1550 as a key downside level over the next 1-2 days.

EUR/USD has eased from its monthly high as traders digest softer US consumer inflation and wait for the next producer price inflation update. Technical traders remain focused on a bullish flag structure, the 50-day EMA and the 1.1578 resistance level as potential triggers for renewed upside.

AUD/USD traded in a narrow range around 0.7063 after the Reserve Bank of Australia kept rates unchanged and left traders weighing the chance of another move later this year. Technical signals point to fading momentum, with chart watchers monitoring 0.6900 on the downside and 0.7100 as a key invalidation area for bearish setups.

USD/ZAR has moved modestly higher after Friday’s sharp dollar-led decline, with traders watching whether the pair can hold its lower trading zone. Thin South African holiday volume, Middle East uncertainty and Wednesday’s US inflation data are keeping market participants cautious.