EUR/USD Outlook: Interplay of Technical and Fundamental Factors

The EUR/USD pair benefited from modest selling pressure on the US Dollar (USD) and concluded Monday's session in positive territory. Recent days have witnessed a notable selling pressure with low volume observed in both the cross and the future of the EUR.

Later in the session, the US Bureau of Labor Statistics will unveil the Producer Price Index (PPI) data for April. Market expectations are poised for a 0.3% monthly increase in PPI, following a 0.2% uptick in March. A stronger-than-anticipated rise in monthly PPI could bolster the USD, potentially prompting a downturn in EUR/USD. Conversely, a softer-than-expected PPI print leading up to Wednesday's Consumer Price Index (CPI) data might fuel a risk rally, weakening the USD and facilitating EUR/USD's upward momentum.

From a technical standpoint, analysis reveals a negative delta in the footprint, suggesting potential targets in areas of price imbalance. This indicates a possibility for the price to decline to fill the void in transaction volumes.


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