In a muted Black Friday session, EURUSD remain stuck in a tight range, oscillating around the 1.10 key support since the start of the week. The liquidity is fairly low due to holidays in the United States, and many traders have already left the markets on Wednesday, suggesting the consolidation will continue until the end of the day.
Despite the bearish bias prevails in the EURUSD pair, the euro bears struggle to push the prices below the mentioned hurdle. On the positive side, Eurozone inflation data came in a tad higher than expected in November, the official preliminary data showed. The core CPI rose to 1.3% versus +1.2% y/y expected. In theory, the report points to a slight rebound in inflation pressures. But the question is can the momentum keep rising next year. In other words, to derive a substantial support from this indicator, the common currency needs to see a more convincing sustainable rise in inflation.
Technically, the pair needs to hold above the 1.10 level in the short term. Otherwise, the euro will slide to the 1.0990 support zone. A break below this barrier could open the way towards the 1.0930 region. For now, the 1.0990 continues to hold the downside pressure. On the upside, the initial bullish target comes around 1.1030.