The EUR/USD pair has recovered slightly, trading near 1.0950. The Euro (EUR) is gaining ground against its major peers, while the US Dollar (USD) is consolidating ahead of the release of the US Producer Price Index (PPI) data.
Key Factors:
- Eurozone Economic Outlook: The Eurozone economy is facing headwinds, with Germany’s economic growth expected to decline.
- ECB Monetary Policy: The European Central Bank (ECB) is expected to cut interest rates further, but the pace of cuts may be slower than previously anticipated.
- US Dollar: The US Dollar is consolidating, awaiting the release of the US PPI data.
Technical Analysis:
- Upward Trend: The EUR/USD pair is in a short-term upward trend, with potential for further gains.
- Support Levels: The 1.0900 level is a key support level.
- Resistance Levels: The September 11 low of 1.1000 and the 20-day EMA at 1.1090 are potential resistance levels.
