The US PCE Price Index is due on Friday, and as the Federal Reserve’s so-called preferred measure of inflation, traders will likely be paying close attention to the data ahead of next week’s FOMC Meeting.
Disappointing economic data has already raised bets on a possible dovish shift from the Fed. If the Core PCE prints as expected and declines for a fourth straight month, it will likely increase selling pressure on the US Dollar.
This could make EUR/USD an interesting pair to keep on the watchlist as it continues to test its uptrend resistance, and is now forming an ascending wedge. Friday’s US inflation data relative to expectation may determine whether the pair can break higher, or if it faces rejection from its current levels.
Check out this article for a deeper technical analysis into EUR/USD and what the PCE data may mean for the market: