The Euro is once again struggling today against its US counterpart racking up its ninth straight day of losses and as we enter the European trading session the chances of the EUR/USD currency pair falling below $1.1703 and hitting a new nine-month low is a real possibility.
The catalyst for a further move downwards will be the release of Consumer price index figures from the US later today where analysts expect a figure of 5.3% which is slightly lower than last month’s number of 5.3%.
If the CPI figures happen to beat analysts estimates, the EUR/USD pair is likely to fall towards the next support level of $1.1640 which would be a very negative situation for the European currency.
On the Chart we can see a head and shoulder pattern has developed with the 2 shoulders developing in December 2020 and May 2021 and the head in February 2021.
Technically this is very bad news for the Euro as it confirms the trend is currently bearish and will also be a catalyst for a break of the neckline at %1.1703