EURUSD – Retracement Expected Before Further UpsideEURUSD – Retracement Expected Before Further Upside
The EURUSD pair has seen strong bullish momentum over the past two days, mainly driven by the weakening U.S. dollar. Last week’s softer-than-expected U.S. Core PCE and PMI data fueled speculation that the Federal Reserve may hold rates steady for longer, weighing on USD sentiment.
However, with upcoming speeches from FOMC members and the Non-Farm Payrolls (NFP) data due later this week, traders may look to take profit or step aside, leading to a short-term retracement before any continuation of the bullish trend.
🔍 Macro & Fundamental Overview:
USD remains under pressure amid declining inflation signals and weakening economic data.
ECB is expected to cut rates, but at a slower pace than the Fed, creating a divergence that supports the Euro in the near term.
Political uncertainties in the EU, including upcoming elections, are worth monitoring.
📉 Technical Analysis:
The medium-term trend remains bullish with EMA 13–34–89–200 aligned to the upside.
Price is currently reacting at the 0.0 FIBO level (1.1420), suggesting a potential pullback.
Key support lies between 1.1345 – 1.1317. If this zone holds, it could serve as a solid base for a bullish continuation.
🧭 Suggested Trade Scenarios:
🔵 BUY ZONE: 1.1317 – 1.1345
SL: 1.1285
TP: 1.1370 → 1.1400 → 1.1420 → 1.1450+
🔻 SELL ZONE (Short-term counter-trade): 1.1418 – 1.1425
SL: 1.1450
TP: 1.1385 → 1.1350 → 1.1320
