The ECB’s 25bps rate hike and softer US PPI data have provided short-term support for EUR/USD, pushing the pair to test the pivotal 1.1575-1.1600 resistance zone. However, the broader trend remains bearish, with longer-term moving averages and macro uncertainties limiting upside potential.
Geopolitical developments, including a potential US-Iran peace deal, have improved risk appetite, but the US dollar remains resilient amid anticipation of future Fed policy decisions. This has kept EUR/USD range-bound, with bulls struggling to sustain momentum above key resistance.
A decisive breakout above 1.1600 is needed to confirm bullish continuation. Until then, traders should remain cautious, as rejection at current levels could trigger a pullback toward 1.1400.
