The Core Personal Consumption Expenditures (PCE) Price Index, a key measure of inflation preferred by the US Federal Reserve (Fed), is expected to show a 0.4% monthly increase and a 2.8% yearly rise in January. This data, due to be released by the US Bureau of Economic Analysis (BEA), could influence Fed policy decisions. Despite the possibility of strong inflation readings, the Fed may maintain its current interest rate stance, as indicated by market expectations for no change in March and an 85% likelihood of the same in May. A higher-than-expected core PCE reading could support the US Dollar, potentially affecting currency pairs like EUR/USD, while a softer-than-expected increase may improve market sentiment and allow EUR/USD to edge higher. Technical analysis suggests key support and resistance levels for EUR/USD at 1.0820-1.0830 and potential targets of 1.0700 on the downside and 1.0900 and 1.0950 on the upside.