EUR/USD Braces for Volatility Amid US Data and ECB Comments
EUR/USD trades near 1.0950, pulling back from last week's peak at 1.0981. Thursday's key economic releases and ECB officials' remarks could spark significant volatility in the pair.
Market Drivers:
- US Inflation Data: Focus on Producer Price Index (PPI) and Retail Sales figures for inflationary signals influencing the Federal Reserve's interest rate outlook.
- ECB Views: Conflicting ECB member comments on the timing of potential rate cuts may impact the Euro.
Technical Outlook:
- Corrective Phase: EUR/USD retreats within a short-term uptrend, potentially finding support between 1.0898 and 1.0888.
- Bearish Signal: A break below 1.0867 could strengthen the case for a trend reversal.
- Uptrend Continuation: A move above 1.0981 would signal further gains, potentially targeting 1.1000 (psychological resistance) and 1.1139 (December 2023 high).
Key Takeaways:
- Expect Volatility: Conflicting signals from both sides of the Atlantic could trigger substantial price swings.
- Watch Technical Levels: Breaks above or below key levels will dictate the near-term directionality of the pair.