FX.co ★ EUR/USD

As the global financial landscape continues to evolve, the interplay between major currencies like the Euro and the US Dollar becomes a focal point for traders worldwide. In recent sessions, the EUR/USD pair has demonstrated resilience, holding steady against the backdrop of solid data emerging from the United States. Despite the Greenback's resurgence, the Euro maintains its stance above the crucial 1.0770 mark, reflecting a marginal gain of 0.10%. Fundamentals of the EUR/USD: With bated breath, EUR/USD traders await the release of key US economic data, a linchpin in the Fed's battle against inflation. Forecasts whisper of a steady 0.3% reading, with the annual inflation rate dipping slightly to 2.6% from February's 2.8%. This potential softening hints at a gradual cooling of price pressures, a factor likely to ripple through market sentiment and shape future trading strategies. Daily Time Frame Technical Outlook: The currency pair has found some solace around 1.0730, but failing to break decisively above 1.0776 is raising red flags for optimistic bulls. If the daily close stubbornly remains below this level, a revisit to the yearly low of 1.0600 could be on the cards. Breaching this point could crack open the crucial support zone at 1.0447, a level last seen in October 2023.

On the upside, maintaining the spot price above 1.0700 is imperative for bullish momentum to flourish. A breach above this level could pave the way for a test of the psychological barrier at 1.0800, followed by a convergence zone formed by the 50 and 200-day moving averages (DMA).