EUR/USD Dips to Critical Trend Level as US Data and ECB Comments Weigh
EUR/USD trades near 1.0800, pressured by a combination of positive US economic figures and ECB Chief Economist Philip Lane's pushback against early rate cut expectations.
Key Factors:
- US Data Impact: Stronger-than-expected Industrial Production and Export Price Index figures reinforce the inflationary narrative.
- ECB Stance: Philip Lane's remarks dampen hopes for an early rate cut, weighing on the Euro.
Technical Outlook:
- Critical Level: EUR/USD declines towards the pivotal 1.0867 support, potentially determining the short-term trend direction.
- Bearish Scenario: A break below 1.0867 could signal a trend reversal, targeting 1.0795 as the next support.
- Bullish Case: Holding above 1.0867 keeps the short-term uptrend intact. A break above 1.0981 would confirm its continuation, potentially aiming for the 1.1000 psychological resistance.