Building on the previous session's momentum, EUR/USD continues to showcase some weakness. Despite a higher Euro CPI, consistent with expectations, and a rise in the U.S. CPI last week, the pair remains weak, hinting at bearish sentiment in the market.
Technical analysis: The pair has broken the supporting trendline it was struggling to hold during our last analysis. As it broke the trendline, it showed us some weakness and continued to slide further down to 1.084. EUR/USD is currently testing a key resistance level at 1.0900 after rebounding from the support near 1.084. For a trend reversal, the pair needs to breach and close above the current reistance around 1.0900. It is currently retesting that level as it has prevoiusly broken it. Should it retest and hold, the 1.0850 zone should be the next area of interest for buyers.
Market Context: The market has already priced in the high CPI figures from both regions, and now traders are assessing the potential impact of today's jobless numbers. The outcome of this data will likely provide further direction for the pair.
Our position: We maintain a neutral outlook, waiting for a clear confirmation of direction. The key focus remains on the pair's interaction with the major trendline and the resistance at 1.090. A breakout above this level could confirm the bullish trend, while a hold below could signal a period of consolidation or a possible retest of lower support levels.
Technical analysis: The pair has broken the supporting trendline it was struggling to hold during our last analysis. As it broke the trendline, it showed us some weakness and continued to slide further down to 1.084. EUR/USD is currently testing a key resistance level at 1.0900 after rebounding from the support near 1.084. For a trend reversal, the pair needs to breach and close above the current reistance around 1.0900. It is currently retesting that level as it has prevoiusly broken it. Should it retest and hold, the 1.0850 zone should be the next area of interest for buyers.
Market Context: The market has already priced in the high CPI figures from both regions, and now traders are assessing the potential impact of today's jobless numbers. The outcome of this data will likely provide further direction for the pair.
Our position: We maintain a neutral outlook, waiting for a clear confirmation of direction. The key focus remains on the pair's interaction with the major trendline and the resistance at 1.090. A breakout above this level could confirm the bullish trend, while a hold below could signal a period of consolidation or a possible retest of lower support levels.