FX.co ★ EUR/USD

EURUSD Price Activity: The EUR/USD pair has seen good buying activity after a gradual fall to the round-level support of 1.11924 in the late New York session. Since German inflation has continued to be higher than expected, investors expect the European Central Bank (ECB) to raise interest rates once again, which has caused the major currency pair to restart its upward trajectory. In the meanwhile, the declining US Dollar Index bolsters the favorable trend of the shared currency pair (DXY). After hitting a new weekly low of 102.07, the Dollar Index is undergoing change. There will be one more rate rise this year, according to Federal Reserve (Fed) chairman Jerome Powell at a private discussion with US lawmakers. However, this news did not help the Dollar Index. The EUR/USD indicates the market's pre-inflationary concern by circling 1.11924 after reclaiming a one-week high early on Friday. Consequently, the Euro pair shows again another struggle with the critical horizontal barrier established on January 23. Purchasers of the Euro pair are anticipated to experience yet another disappointment if the US Core PCE Price Index declines or the Eurozone inflation data eases, given the overbought RSI (14) and the pair's persistent inability to breach the 1.12254–1.12364 flat resistance area. If the EUR/USD bulls reject the fundamental support offered by the RSI (14) conditions and break over the 1.12254 barriers, the next goal might be a rise toward the yearly top set in January at 1.13274. The short-term EUR/USD decline is constrained by a rising support line that has been in place for two weeks and is closest to 1.11474 at the latest. EUR/USD buyers may then use the mid-March high around 1.10474 and the 50-SMA level at 1.11124 as their last lines of defense; a breach of either may quickly move the price closer to the monthly low of 1.08024.