FX pair has seen draw-down since mid-April, currently reaching 1.15430 price level.
Economic Calendar Analysis
Volatility may increase toward the end of the trading week, driven by the upcoming CPI and PPI releases.
The forthcoming Federal Reserve interest rate decision should also be considered a potential catalyst for additional volatility. While market consensus currently favors a "wait-and-see" approach and any immediate change in interest rate policy is viewed as a low-probability scenario, the Fed's forward guidance could have a more significant impact.
In particular, guidance from the Federal Reserve Chair may influence FX valuations and overall demand for the U.S. dollar, potentially generating substantial market reactions even if rates remain unchanged.
EUR/USD daily chart analysis
EUR/USD daily chart exhibits a clear bearish bias as price actions breaks below the key 1.16750 - 1.17000 consolidation zone, transforming this previous support into a firm layer of overhead resistance. The price is currently testing a minor psychological floor at 1.16009, dynamically capped by a downward-sloping 20-day SMA that confirms active seller control. With the smoother 20-period RSI printing at a downward-pointing 40.90, the pair has ample structural room to expand lower without being oversold; a decisive daily close below 1.16000 will likely accelerate momentum toward the next major structural targets at 1.15250 and the March double-bottom lows near 1.14600.Daily Chart
Dollar Index weekly chart's review
US Dollar Index weekly chart exhibits a strengthening bullish bias as the price rallies above the 52-period Moving SMA, signaling a reversal of the prior medium-term downtrend. Having established a solid higher low near the 96.60000 and 97.85000 support zones, the index is showing robust upside momentum as it tests the immediate resistance near 99.914 and targets the key psychological 100.45000 threshold. A decisive weekly close above this confluence area would open the door for an extended recovery toward the major 105.00000 resistance level, while any pullback toward the 52 SMA should now serve to validate dynamic support.Dollar Index chart
Read More: Technical Analysis
Traders are long
The sentiment data for EUR/USD reveals a continuation towards bullishness.