The EUR/USD pair continues its upward trajectory, consistently trading around the 1.0715 mark and reaching an intraday high of 1.0734. This ascent is largely attributable to a faltering US dollar, which has struggled to find footing despite the Federal Reserve’s hawkish posture amid favorable market conditions.

As investors await pivotal economic indicators from the Eurozone, there is noticeable hesitation to commit to stronger positions.

US Economic Indicators Weaken Dollar, Bolstering EUR/USD

The US dollar is currently experiencing downward pressure, exacerbated by preliminary economic reports such as April’s S&P Global Purchasing Managers’ Index and the first-quarter GDP data.

These indicators suggest potential vulnerabilities in the US economy’s capacity to endure further interest rate hikes by the Federal Reserve, maintaining the dollar’s weakened stance.

Anticipation of ECB Policy Moves Influences EUR/USD Dynamics

Investor focus is now shifting to upcoming economic releases from the Eurozone, including preliminary GDP for the first quarter and April’s Consumer Price Index (CPI). These figures are critical as they may sway the European Central Bank (ECB) towards interest rate adjustments.

Market speculation is increasingly leaning towards an ECB rate cut in June, influenced by these forthcoming economic insights, potentially impacting the euro’s strength against the dollar.

EUR/USD Price Forecast: Technical Outlook and Key Levels

As of today, the EUR/USD price has climbed by 0.35%, trading at 1.07288. This gain reflects the pair’s positive momentum as it tests significant technical thresholds on a 4-hour chart. Positioned just above the pivot point of 1.07082, the pair shows potential for sustaining its bullish trend.

Should it remain above this level, it faces immediate resistance at 1.07534, with further resistance points at 1.07777 and 1.08088 that could be tested with continued upward movement.

On the downside, a reversal could see the pair finding support at 1.06783, with additional support at 1.06431 and 1.06090, crucial levels that could deter a steeper decline.

The technical indicators, including a Relative Strength Index  (RSI) of 57, suggest a mild bullish momentum without reaching overbought conditions.

The 50-Day Exponential Moving Average (EMA) at 1.07043, just below the current price, lends additional support to the potential for upward movement.