EURUSD

This week, the main direction of the currency pair will be determined by the FOMC interest rate decision to be announced on Wednesday. A expected cut of 25 basis points to 4.25% and then Powell's dovish comments could weaken the Dollar, pushing the pair above the 1.17264 pivot level to the resistances at 1.17727 and 1.17959. However, if Tuesday's US Retail Sales data comes in stronger than expected, the perception that the Fed will be more comfortable may put pressure on the pair. In the case of a hawkish surprise from the Fed (not cutting rates), a sharp decline towards the supports at 1.17052 and 1.16801 is likely. While the Eurozone CPI data on Wednesday is expected to come in line with expectations, a potential surprise could create additional volatility in the pair.