EUR/USD has been bullish since October last year and after a sizeable retreat in February, it resumed the bullish momentum in March, pushing above the major level at 1.10 for the second time this year. Although, buyers still don’t seem confident above this level, since they don’t seem to be able to hold the gains above there.

After the sharp reversal in the previous week from around 1.1050, the trend remained bullish last week but it was not an easy week for this pair, as the market remained range-bound within a 90-pip range. Fundamental drivers such as the US manufacturing reports and comments from FED members contributed to the volatility.

But, despite hawkish comments from the FED threatening to strengthen the US dollar, the greenback has traded sideways all week. The latest FED Fund probabilities suggest that the bank will raise rates by 25 bps once more in May before pausing for three meetings. Then they are expected to begin cutting interest rates at the start of Q4.

This week, Euro traders will likely experience more volatility with the release of several high-impact data reports from the US such as the prelim GDP numbers for Q1, while today we have some data from Germany being released. The German Ifo Business Climate report was published a while ago.

EUR/USD Live Chart