If the US economy continues to show signs of a slowdown, increasing the chances of a September rate cut, we could see a ranging market for the EUR/USD.

The pressure on the ECB to lower interest rates in its June 6th meeting is immense, and the market is fully expecting a cut.

Riding above all three moving averages and with the RSI sitting at 58, the outlook for the EUR/USD is bullish in the short-term.

After the CPI figures were released, the chances of a September rate cut increased to 72%, with a July rate cut not out of the question either, with a 35% chance.

The good news is the expectations of divergence in rates have brought renewed volatility and volume to the Forex markets.