Big day for the EUR/USD pair as the key US inflation data will determine its direction in the short-medium term

Big day for the EUR/USD pair as the key US inflation data will determine its direction in the short-medium term. Currently trading at around €1.1027 against the dollar, we can see that the support along the 100-day moving average has held out over the recent days. The moving averages are now coming together ahead of the data, resistance for the time being sits at €1.1034 (20-day MA). However, the inflation data will determine the future short-medium term outlook of this forex pair. Stronger-than-expected results would indicate that the US economy is not cooling as much as the Federal Reserve would like, leaving room for more interest rates and therefore strengthening the dollar. But if it comes in as expected, we may see the euro bounce back and the level of €1.0912 will be confirmed as the new support base. On the other hand, a fall below €1.0912 after the news may see a retracement lower towards €1.0833. Over to the technical indicators, MACD seems like its heading towards a positive stance and the RSI is also rising as it now reads 51. Technical indicators can be deceiving ahead of big events as the markets drag traders into the gamble. Hence, traders should be cautious when trading around news.