EUR/USD: Can the Bullish Momentum Be Sustained?

EUR/USD recently peaked at 1.0579, the highest in two days, before retracting to 1.0550, showcasing its best monthly performance despite an overall bearish trend. Market attention now centers on an upcoming speech by Fed Chair Powell. A sharp rebound post a yearly low's daily close has improved the Euro's outlook, potentially reaching 1.0700 without altering the bearish trend. On the 4-hour chart, slight upside potential is noted before the Asian session, with strong resistance around 1.0580. Surpassing this is crucial for potential gains to 1.0600 and then 1.0630, while a dip below 1.0550 would escalate bearish pressure towards support at 1.0520 and 1.0495. Thursday saw EUR/USD recovering from monthly lows, driven by a US Dollar correction. US economic data highlighted a robust economy, with Q2 GDP growth at 2.1% annualized and Initial Jobless Claims lower than expected at 204,000. The Core Personal Consumption Expenditure Price Index release is pivotal for possible Dollar rallies. The impact of the ECB on the Euro is currently limited, with expectations of no rate hike soon. Data remains crucial, notably Germany's annual inflation rate dropping from 6.1% to 4.5%, alleviating concerns. Eurostat will release the Eurozone Harmonized Index of Consumer Prices on Friday, expected at 4.5% (down from 5.2%) for the headline rate and 4.8% (down from 5.3%) for the core rate, providing insights into future trends. Let me know your thoughts, happy trading to all from Nicola, the CEO of Forex48 Trading Academy.