The EUR/USD pair experienced a slight pullback from a one-month high on Monday due to a modest uptick in the US Dollar. However, the overall technical setup remains favorable for bullish traders, with positive momentum and support from dovish Federal Reserve expectations. The recent breakout above key resistance levels further supports the outlook for near-term gains in the pair.
Despite the pullback, the EUR/USD pair remains above the 1.0900 mark and could potentially continue its upward movement if it breaks through the 1.0910-1.0915 area. This could lead to a test of the next resistance level at 1.0960-1.0965 and potentially push the pair towards the 1.1000 psychological level for the first time since January. The upcoming European Central Bank (ECB) meeting on Thursday could also impact the pair’s movement.
In the event of a correction, buyers are likely to step in near the descending trend-line resistance area around 1.0870-1.0865, limiting any downside movement. Strong support is also present at the 1.0800 confluence level, followed by the 1.0755-1.0750 zone. A break below these levels could lead to a further decline towards the June swing low around 1.0665.
The European Central Bank’s (ECB) Monetary Policy Statement, released at each governing council meeting, provides insight into the ECB’s decision-making process and its impact on inflation targets. A hawkish view is seen as positive for the Euro, while a dovish view can lead to a bearish trend. Traders closely monitor these statements for potential market movements in the Euro. The next release is scheduled for July 18, 2024, with its potential impact on the EUR/USD pair.
Overall, the EUR/USD pair faces some selling pressure but remains supported by its technical setup and market expectations. Traders are watching for potential breakouts above key resistance levels or a bounce back from support zones to determine the pair’s next direction. The ECB meeting on Thursday could provide further clarity on the Euro’s movement in the near term.
