EUR/USD Steady Amid Renewed Selling Pressure On Greenback

Fundamental Analysis

* Euro’s Steadfast: The Euro has slightly recovered and edge higher against the dollar as investors consolidated gains after Federal Reserve officials repeated the interest rate-cutting cycle is on hold pending new economic data, while the monetary easing outlook for other major central banks remained unchanged. On top of that, Euro also received support from positive data. Core HICP data reflected a year-on-year increase of 2.9%, consistent with preliminary figure. Month-on-month readings aligned with the initial estimates as well. The lack of change in the final estimate may have taken the heat out of increasingly dovish expectations regarding interest rates from ECB.

Technical Analysis

* Technical Breakout: EUR/USD was traded higher while currently testing the resistance level 1.06750. MACD which illustrate bullish momentum signal with recent formation of golden cross suggest the pair to further extend its gains.

* Resistance and Targets: If the bullish momentum persists, there’s a strong likelihood that the price will potentially head towards 1.07459 after the price breach above the level 1.06750. Conversely, a failure to breach above the level would indicate the potential trend continuation for the pair and head back towards the support level 1.06050.

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Potential Risks

With no new driving force, markets will remain attentive to economic data from both the EU and the US for further guidance. Additionally, speeches from key ECB figures such as ECB Executive Board Member Piero Cipollone, ECB Executive Board Member Isabel Schnabel, and President Christine Lagarde will be closely monitored, potentially influencing the pair’s volatility.

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Monitoring

Stay updated on EU and US, ECB related updates and any shifts in the US Dollar’s strength by following PU Prime’s market insights and daily financial news.

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Disclaimer: Trading derivatives involves high risks, and market conditions can change rapidly. The content is for informational purposes only and should not be considered as financial advice. Traders should conduct their own research and consider risk management strategies.