The EUR/USD pair continues frozen around 1.1230, having been confined to an 80 pips range for all of the week. Despite volatility has returned to the markets after a dull August, it has not reached the EUR/USD pair, which remained immune to macroeconomic data, market sentiment and even Central Banks' officers jawboning. The last chance the pair has of showing signs of life is the upcoming release of the US CPI figures for August, although given that no big changes are expected from previous month´s readings, chances of a strong reaction are quite limited.
US inflation is expected to have ticked up to 0.1% from previous 0.0% monthly basis, while the annual reading is expected at 1.0%, from previous 0.8%. Core readings, excluding food and energy, are expected also pretty much unchanged. A strong upward surprise may trigger some dollar's rally across the board, while worse-than-expected numbers will surely put it back under selling pressure.
In the meantime, technical readings in the 4 hours chart maintain the neutral stance seen on previous updates, with indicators lacking directional momentum around their midlines, and the price hovering around its moving averages that remain pretty much horizontal.
The base of the range is 1.1200, which means that a bearish acceleration through it can see the pair extending its decline, with the next intraday supports at 1.1160 and 1.1120. Above 1.1290 on the other hand, where the pair has a daily descendant trend line coming from 1.1615, it can advance up to the 1.1335 region, en route to 1.3365, August high.
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