EUR/USD - resistance is clearly present around €1.0850 as the pair adjusts itself ahead of inflation data

Taking a brief look at the euro vs dollar forex pair ahead of the US inflation data. We can see the euro has rallied back up to €1.08 from the February lows of €1.07, currently trading at around €1.0830 against the dollar. Looking at the 4-hourly chart, we can see that the pair is clearly finding some resistance in and around €1.0850 (red ovals). A break and close above this resistance would suggest that perhaps the demand for the euro is increasing, further weakening the US dollar. However, with the inflation data upcoming, the dollar could regain its strength. An uptick in inflation would raise the chances of the Fed holding rates for longer in the short term, as a result, the dollar should benefit from this. However, more signs of cooling could spur an extension for the Euro towards €1.09. Even though the forex pair has managed to move above its 200-day moving average, we haven’t witnessed any strong consolidation, Therefore, a move back below cannot be ruled out. The first support sits along the 200MA, which reads €1.0817. A break below it would most likely see a re-test of €1.0796 and maybe €1.0790. If those levels were to be broken, then bears would start eyeing up €1.0750. Looking at the technical indicators, we can see the indicators are adjusting ahead of the data. The MACD is slightly negative but the RSI is neutral as it reads 47.