EUR/USD Extends Rally Above 1.0800 Despite Fed's Hawkish Outlook

The EUR/USD pair, after experiencing a retracement yesterday, has found a pullback today at the 50% Fibonacci level from the previous swing, extending its price move above the 1.0800 mark through the mid-European session on Friday. The pair's movement is influenced by a combination of factors that paint a nuanced picture for traders.

One significant factor bolstering the euro is the expectation that signs of economic recovery in the Eurozone will allow the European Central Bank (ECB) to delay easing its monetary policy until June. This expectation acts as a tailwind for the shared currency. However, the Federal Reserve's (Fed) hawkish outlook on interest rates provides some support to the US Dollar (USD), thereby limiting the upside potential for the EUR/USD pair.

From a technical perspective, today, the EUR may continue to rise until it reaches the 1.08400 level before the closing of the trading week.

Meanwhile, investors are also monitoring the risk of a further escalation of geopolitical tensions in the Middle East. Additionally, there are expectations that global central banks will maintain higher interest rates for an extended period, which could contribute to keeping optimism in the markets in check and potentially benefiting the US Dollar.

Overall, the EUR/USD pair faces a mix of bullish and bearish signals, with traders closely monitoring developments in monetary policy, geopolitical tensions, and market sentiment to gauge the pair's future direction.

Trade closed: target reached:

Trade closed: target reached: