FUNDAMENTALOVERVIEWUSD:The US Dollar weakenedacross the board yesterday following the soft US core inflation data but the initial moves wereeventually faded and the greenback gained. It’s hard to explain such a priceaction but we got also renewed Trump’s threats against Iran following the USCPI report which weighed on the risk sentiment and could have been the reasonfor the comeback.In terms of market pricing,traders firmed up bets on Fed rate cuts with the total easing by year-endincreasing to 54 bps from 52 bps before the CPI release. Fed members continueto support the current patient and data-dependent stance. The outlook for theUSD remains neutral/bearish for now.Today, the focus will be ona potential US Supreme Court decision on Trump's tariffs. If tariffs get struckdown, we might see general risk on sentiment as initial reaction and that couldweigh on the US Dollar in the short-term. On the other hand, if tariffs arekept in place, it shouldn't change much given that the market got already usedto tariffs.EUR:On the EUR side, the ECB remainsin a neutral stance reaffirming its data-dependent and meeting-by-meetingapproach to policy decisions. ECB members continue to repeat that the currentpolicy is appropriate, and they won’t respond to small or short-term deviationsfrom their 2% target. The data has been supporting the central bank’s neutralstance, with inflation data recently surprising to the downside.EURUSD TECHNICALANALYSIS – DAILY TIMEFRAMEOn the daily chart, we cansee that EURUSD rallied into the key 1.17 resistance after the DOJ subpoenanews but eventually erased all the gains as the sellers piled in to positionfor new lows. The price remains confinedbetween the 1.1615 level and the trendline. The sellers will likely continue tolean on the trendline to keep pushing into new lows, while the buyers will lookfor a break higher to open the door for a move into the 1.18 handle next.EURUSD TECHNICALANALYSIS – 4 HOUR TIMEFRAMEOn the 4 hour chart, there’snot much we can glean from this timeframe given that the only key technicallevels remain the trendline and the 1.1615 level. We need to zoom in to seesome more details.EURUSD TECHNICAL ANALYSIS –1 HOUR TIMEFRAMEOn the 1 hour chart, we can see that we have a minor downward trendlinedefining the current bearish momentum. The sellers will likely lean on thetrendline with a defined risk above it to position for a drop into new lows,while the buyers will look for a break higher to pile in for a rally into the majortrendline targeting a breakout. The red lines define the average daily range for today. UPCOMING CATALYSTSToday we get the November US Retail Sales and US PPI reports, so it’s goingto be old data. The market will likely focus on the potential US Supreme Courtdecision on Trump’s tariffs. Tomorrow, we get the latest US Jobless Claimsfigures. This article was written by Giuseppe Dellamotta at investinglive.com.