EUR/USD Price Forecast: Biding its time near 1.1550, awaiting US CPI numbers

The Euro (EUR) maintained a stable position near 1.1550 against the US Dollar (USD) as investors await the release of US Consumer Price Index (CPI) figures on Wednesday. European trading showed the pair flattening just below the 1.1550 level during the session. Concerns over the US-Iran peace process are weighing on the Euro, as recent attacks on vessels attempting to cross the Straits of Hormuz and Bab el-Mandeb have raised doubts about free sea traffic in the Gulf region.

In the Eurozone, Germany's HICP confirmed a rise in July's consumer price inflation to 2.8% year-over-year, from 2.4% in June, with energy inflation reaching 7.3%. However, the positive effect on the Euro has been short-lived, and US Dollar rallies remain subdued. Technical analysis suggests a lack of clear trend, with the 4-hour Relative Strength Index around 48 and the Moving Average Convergence Divergence slightly negative.

A break below the 1.1500 level could lead to further downside, with late-July lows at the 1.1355 area.