Yesterday, the Euro raised from 1.1250 to 1.1315 against the dollar. Today, the EUR/USD pair was trading steadily, and on Friday it remained almost unchanged, trying to stick to the level of 1.1300. Investors are responding to the Fed’s position, as markets are already expecting interest rate cuts in July. On the other hand, the European Central Bank is also ready to step up its incentive, as some analysts believe that negative ECB rates may adversely affect the common currency rate.
EUR/USD technical analysis
The Euro started a decent upward move after it broke the 1.1200 resistance area against the US Dollar. The EUR/USD pair even broke the 1.1250 resistance area to move into a positive zone.
There was a lot of strength, resulting in a close above 1.1280 and the 50 hourly simple moving average. A new weekly high was formed near 1.1315 and the pair recently corrected lower.
The pair remained well bid on the downside and it is currently consolidating near 1.1300. There is a breakout pattern forming with resistance near 1.1310 on the hourly chart. If there is an upside break, the pair could rally further above 1.1320 and 1.1340.
Conversely, if there is a downside break, EUR/USD might correct below the 1.1280 support. The next key support is near the 1.1250 level, where buyers are likely to appear.