Recent Performance:
Price Movement: EUR/USD has been trading in a narrow range above the 1.0800 level. The pair has shown limited movement within a risk-averse market environment, supporting the US Dollar's strength.
Technical Analysis:
Support and Resistance Levels: The pair faces resistance at 1.0855, marked by the 200 Simple Moving Average (SMA). A break above this level could reach the 1.0900 region, with further potential towards the 1.1000 mark. On the downside, support is at 1.0730, aligning with the 200 SMA on the daily chart. A drop below this level may target the 1.0630 area, followed by 1.0580.
Technical Indicators: The daily chart indicates a mixed outlook. The Momentum indicator is flat around its 100 line, providing little directional insight, while the Relative Strength Index (RSI) is slightly higher at approximately 58, suggesting a cautious sentiment.
Fundamental Factors:
Eurozone Data: Recent data from Germany showed that the annual Consumer Price Index (CPI) inflation declined to 2.2% in March, aligning with expectations. This development may influence the European Central Bank's monetary policy decisions.
US Economic Indicators: The US Dollar's strength has been supported by its safe-haven appeal amid geopolitical tensions and trade uncertainties. Market participants are closely monitoring US economic data releases for insights into the Federal Reserve's future policy actions.