EURUSD has formed lower highs and higher lows inside a symmetrical triangle chart pattern, and price is currently bouncing off support. Another test of resistance could be in the works.

The 100 SMA is above the 200 SMA to confirm that the path of least resistance is to the upside or that a rally is likely to follow. Stronger bullish pressure might even spur a break above the resistance and rally that’s the same height as the chart formation or roughly 100 pips.

Price is also climbing above the 100 SMA dynamic inflection point that could also hold as support on dips.

Stochastic is pulling higher from the oversold area, confirming that bullish momentum might pick up. A bit of bullish divergence can also be seen, as EURUSD formed lower lows while the oscillator had higher lows.

RSI is also on the move up without reaching the oversold area, suggesting that buyers are eager to return.

The euro drew support from better than expected eurozone consumer confidence data while upbeat US CB consumer confidence figures appear to have boosted risk-taking.

There are no major reports out from the eurozone today while the US has the final GDP reading lined up. The US core PCE price index report due on Friday might be a bigger catalyst for a breakout, as the Fed’s preferred inflation measure could have a strong impact on risk sentiment and dollar direction.

Weak inflation data could bolster interest rate cut expectations for next year, as hinted at by the Fed’s dot plot of projections in the December FOMC statement. This could mean fresh downside for the US dollar across the board on expectations of low US interest rates and a pickup in risk appetite.

On the other hand, upbeat inflation figures could provide some support for the dollar and a possible break lower for EURUSD.