The euro is correcting around 1.1411, while investors are focused on the latest inflation data, which are shaping expectations regarding the monetary policy trajectory of the European Central Bank (ECB) ahead of tomorrow’s meeting at 14:15 (GMT+2).

During the morning session, the EUR/USD pair is developing a weak downward trend in the ultra-short term, trading around 1.1417 and renewing lows of July 14 amid growing geopolitical tensions in the Gulf region.

The probability of a decrease remains.

On the daily chart, an upward third wave of the higher degree 3 of (A) is developing, within which the first wave of the lower degree i of 3 has likely been completed, followed by a corrective movement forming the second wave ii of 3. On the four-hour chart, wave (c) of ii is forming. In addition, wave iii of (c) has already formed, a correction has developed as wave iv of (c), and wave v of (c) is developing. If this scenario proves correct, the downward trend of the EUR/USD pair is expected to continue toward the 1.1200–1.0990 area, with the critical stop loss level for this scenario at 1.1484.

During the morning session, the EUR/USD pair is correcting downwards around 1.1465 as the American currency is weakening.