Technical Analysis:
EURUSD is currently trying to retrace to 4H FVG around 1.11140 and from here we might see price dropping again. We can look for confirmations around this FVG and target the swing low in 4H time frame which is 1.10561.
Fundamentals:
The euro remains flat against the dollar after data showed eurozone inflation eased in line with expectations in August. Inflation fell to 2.2% year-on-year in August from 2.6% in July while core inflation fell to 2.8% from 2.9%, as expected by economists in a WSJ survey. "For the European Central Bank, the modest progress in core inflation and wages now and expectations for next year seem enough to cut by 25bps in September," ING economist Bert Colijn says in a note. But this is a "slow and gradual process" as the ECB remains concerned about upside risks to the inflation outlook, he says. The euro trades at $1.1083, little changed after the data.
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