EURUSD Insight

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Key Points
- The U.S. February Services PMI preliminary reading came in at 49.7, falling below the benchmark 50 for the first time in 25 months.
- The finalized U.S. 1-year inflation expectation was confirmed at 4.3%, matching the preliminary reading but surging 1.0% from the previous month. Meanwhile, the finalized 5-year long-term inflation expectation was revised up by 0.2% to 3.3%.
- The South China Morning Post reported that a Chinese research team has discovered a new bat coronavirus that uses the same human receptor as the virus causing COVID-19, posing a potential risk of animal-to-human transmission.
- In the German federal election, the center-right Christian Democratic Union is expected to win. Markets are closely watching whether Germany’s constitutional "debt brake" will be eased after the election.

Key Economic Events This Week
+ Feb 24: Eurozone January CPI
+ Feb 25: Germany Q4 GDP
+ Feb 27: U.S. Q4 GDP
+ Feb 28: Germany February CPI, U.S. January PCE Price Index

EUR/USD Chart Analysis
The upward trend remains intact; however, the pair is struggling to break through the previous high. If it successfully surpasses this resistance level, a short-term rise to the 1.06000 level is expected, while in the mid-to-long term, it could form a peak around 1.08000.
However, if it fails to break through the 1.05000 resistance, a pullback toward 1.02000 may occur, after which the market will likely determine its next direction.