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EUR/USD Climbs to 1.0734 Amid Weakening US Dollar and Upcoming ECB Decisions

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.

EUR/USD Price Chart - Source: Tradingview

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

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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.

EUR/USD Price Chart - Source: Tradingview

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.

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Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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