EUR/USD Soars as Euro Defies the Dollar's Decline - Crucial Data

EUR/USD

EUR/USD briefly rose above 1.0630, making modest gains after hitting monthly lows. The Euro is in a critical area, waiting for more US inflation data. It benefits from the US Dollar's weakness due to declining yields and positive market sentiment. The recent US Producer Price Index increase didn't greatly affect the Dollar, and the latest FOMC minutes emphasized a data-dependent policy approach. Thursday's economic calendar includes ECB minutes and the US Consumer Price Index, with potential market impact hinging on CPI performance.

Based on technical analysis, the EUR/USD rose on Wednesday, pushing towards the upper band of the Bollinger Bands. Currently, the EUR/USD is trading below the upper band, while the bands are trending upwards, suggesting the potential for another upward move to retest the upper Bollinger Band. The Relative Strength Index (RSI) stands at 62, indicating that the EUR/USD is currently attempting to establish a bullish bias.

Resistance: 1.0674, 1.0736
Support: 1.0583, 1.0530