• EUR/USD is expected to deliver an upside move above 1.0050.
• The doors of the Fed’s full percent rate hike are open amid soaring core CPI numbers.
• A decline in Eurozone Consumer Confidence could impact the shared currency bulls.

The EUR/USD pair attempted an upside break above the three-day consolidation formed in a narrow range of 0.9950-1.0020 in the last week. The asset is expected to generate gains as a break above 1.0040 will confirm the conclusion of the inventory accumulation process. The major is displaying signs of strength despite the rising odds of a bumper rate hike announcement by the Federal Reserve (Fed).

Considering the market consensus, Fed chair Jerome Powell will push the interest rates higher to 3.25-3.50% with a third consecutive rate hike by 75 basis points (bps). As price pressures have rebounded and are not responding well to the ongoing pace of interest rates, the extent of the rate hike is open to a full percent rate hike.

In the prior, US Consumer Price Index (CPI) release, the core inflation improved dramatically to 6.3%, higher than the expectations of 6.1% and the prior release of 5.9%. Also, the US Retail Sales landed at 0.3%, higher than the expectations of 0% and the prior release of -0.4%. This indicates that a revival in the demand prospects is not caring for the price rise index, which is supporting the Fed to go conservative unhesitatingly.

On the Eurozone front, investors are awaiting the release of Thursday’s Consumer Confidence data.  The economic data is seen lower at -26 against the prior release of -24.9. Consumers are upset over the inflation chaos and signs of failure by the European Central Bank (ECB) in dealing with the same. A decline in consumer confidence indicates a loss of confidence in the economy. This is the outcome of bleak growth prospects, soaring inflation, and deepening energy prices.

• AUD/USD bulls eye 0.6750 for the opening sessions. 
• The daily structure was broken last week, leaving bias to the downside longer-term. 

As per the prior analysis, AUD/USD Price Analysis: Bearish bias persists as bears take control at key daily support, where it was stated that AUD/USD showed no sign of correcting on a longer-term time frame basis, threatening a break of key support in the following analysis:

the bears did indeed stay the course. 

AUD/USD H1 chart, prior analysis

It was argued that the bears would be looking for an engulfing formation below the pin bar that had tapped the lower quarter of the 0.67 area that has pierced the 50% retracement of the latest bearish impulse on the hourly time frame. This was an area of confluence as per the wicks there and the bias is to the downside below 0.6750 tops:

AUD/USD updates, H1, daily chart

The price sank and has so far respected the resistance on the retests. However, a bullish structure is formed, to a bullish continuation can not be ruled out for the opening sessions:

On the other hand, the daily resistance could be as far as the bulls make it, near 0.6750: