EUR/USD Are the bulls taking back control?

As evaluated in our previous session, the EUR/USD is exhibiting signs of a bullish resurgence, echoing the GBP/USD's trend, driven by a weakening USD after the Fed’s pause in rate hikes in response to softer CPI data.

Technical analysis: EUR/USD's rebound off the 1.0755 level, a significant Fibonacci juncture, mirrors the GBP/USD's earlier support retest at 1.2559, suggesting a bullish undertone. The current trajectory points towards a test of the 1.0800 resistance. Overcoming this barrier could signal further ascension, aligning with the GBP/USD’s aim for previous highs.

Our position: Leveraging a robust bullish sentiment underpinned by last Friday's dovish tilt in Powell’s speech and today's anticipated NFP report, we are eyeing opportunities for long positions. The strategy remains bullish, particularly as the pair stabilizes above the 1.0755 support, akin to the GBP/USD maintaining above 1.2559. A breakout past 1.0800 could reaffirm the bullish momentum.