The EUR/USD pair has remained relatively stable, with the Euro showing resilience against the US Dollar. The market’s focus remains on the Federal Reserve’s monetary policy outlook, with expectations for interest rate cuts in September increasing.
The Eurozone economy has shown signs of slowing, with the recent release of inflation data indicating a decline in price pressures. However, the ECB is expected to maintain a cautious approach to interest rate cuts, given the ongoing wage growth and the need to address inflationary pressures.
EUR/USD Technical Outlook
The EUR/USD pair has shown a short-term downtrend, with the 1.1040 level acting as a key support. A break below this level could signal a further decline, with potential targets at 1.1000 and lower. However, the pair’s recent recovery and the bullish momentum indicator suggest a potential for a short-term rebound.
