The EUR/USD pair has rebounded from recent lows, supported by a correction in the US Dollar. However, the pair’s outlook remains uncertain due to several headwinds, including potential trade tensions and economic challenges in the Eurozone.
Key Factors Influencing EUR/USD:
- US Federal Reserve: The Fed’s interest rate decision and subsequent press conference will be closely watched by market participants.
- US-EU Trade Relations: Potential trade tensions between the US and EU could negatively impact the Euro.
- Eurozone Economic Outlook: The collapse of the German coalition government and potential economic slowdown in the Eurozone are also weighing on the Euro.
Technical Analysis:
The EUR/USD pair is facing strong resistance near the 20-day and 50-day EMAs. The RSI indicates a bearish momentum, suggesting that a sustained recovery may be challenging.
