

Market Analysis
EUR/USD is trading sideways above the 1.0900 support level during Friday’s European session. The currency pair is currently moving within Thursday’s trading range, with investors awaiting new insights on how the European Central Bank (ECB) and the US Federal Reserve (Fed) will adjust interest rates this year.
The ECB is anticipated to implement two additional rate cuts this year due to the Eurozone's challenging economic conditions and price pressures aiming to return to the 2% target. However, ECB officials are cautious about committing to a fixed rate-cut trajectory, given the uncertain path toward the central bank’s goal.
Finnish ECB policymaker Olli Rehn noted in a Wednesday speech that "Inflation continues to slow down but the path to the two percent target remains bumpy this year." He also suggested that rate cuts would support the Eurozone's economic recovery, particularly benefiting the "fragile" industrial sector and sluggish investments, as reported by Reuters.
Technical Analysis: EUR/USD Holds 200-Day EMA
EUR/USD is trading near the upper boundary of a daily channel formation. A breakout from this pattern could lead to more significant upward movement and increased trading volume. The 200-day Exponential Moving Average (EMA), positioned around 1.0800, has served as strong support for the Euro bulls.
The 14-day Relative Strength Index (RSI) is currently within the 40.00-60.00 range. A rise above 60.00 on the RSI would signal a potential bullish momentum.
Should the pair break above Monday’s high of 1.1009, it could push EUR/USD towards the high of 1.1065 reached on August 10, 2023, followed by the round-number resistance at 1.1100.
Conversely, if EUR/USD falls below the August 1 low of 1.0777, it could decline towards the February low near 1.0700. A further breakdown could expose the pair to the June 14 low at 1.0667.
Paraphrasing text from "FX Street" all rights reserved by the original author.