Fundamental analysis of EUR/USD

EUR/USD pair is actively growing, trading around $1.10050 under the influence of data on producer price index and inflation in China, as well as bank tax update in Italy. There are no forecasts on Eurozone economic indicators for this day, the direction of the currency pair will be determined mainly by the economic announcements of the European Central Bank (ECB) and news from the US. 
 
The preliminary publication of the ECB Economic Bulletin for August will play an important role. This bulletin summarizes the ECB's views on economic, financial and monetary developments, covering key areas such as inflation, economic activity, risk assessment and monetary policy. For the bulletin to ignite optimism, it must convincingly counter growing fears about the possibility of a recession in the euro area. Concerns about the economic outlook, ECB monetary policy and inflation only reinforce the importance of the bulletin. 
 
 Amid growing recession fears, supported by economic signals from Germany and China, the upcoming US CPI report is attracting a lot of attention. If the inflation figure comes in higher than expected, it could fuel speculation that the US Federal Reserve will raise interest rates in September. The prevailing forecast is for the US annual inflation rate to rise from 3.0% to 3.3% in July, with core inflation remaining stable at 4.8%. While CPI data plays a central role, unemployment insurance claims data will also be factored in, albeit in a secondary role. In addition, unexpected bank taxes in Italy and recession fears in Germany are putting downward pressure on the euro. With the ECB likely to suspend its rate review in September due to easing inflationary pressures and recession fears, this could limit the euro's bullish trajectory.
 
Recent statements from Federal Reserve officials indicate that further rate hikes should be refrained from, keeping rates unchanged. This opinion was supported by Philadelphia Fed President Patrick Harker and Atlanta Fed President Raphael Bostic. However, all eyes are on the upcoming US inflation data, which may hinder the US dollar growth and contribute to EUR/USD growth. The CPI report is due out soon, and since it is a key element of the Fed's approach to rate assessment, investors are closely watching its impact on the EUR exchange rate.
Technical analysis and scenarios:

Given that the price is currently trading near the upper Bollinger Band and is above the middle band, we can say that there is a short-term bullish momentum. The Bollinger Bands are currently pointing horizontally, indicating a period of low volatility. As the price is moving in the upper range of the Bollinger Bands, it also suggests that EUR/USD is leaning towards bullish sentiment in the short term.
Main scenario (BUY)
Recommended entry level : 1.10340.
Take Profit: 1.11400.
Stop Loss: 1.10200. 
Alternative scenario (SELL)
Recommended entry level: 1.09000.
Take profit: 1.08140.
Stop loss: 1.09500.