The market sentiment for the euro is bearish, with both monthly and daily timeframes showing a downward trend. A Death Cross, where the 50-day Simple Moving Average crosses below the 200-day Simple Moving Average on the daily chart, indicates the potential for a longer-term downtrend.
In the short term, price action is expected to face resistance at $1.07 after testing support and resistance levels at $1.0680-$1.0690 on the H1 timeframe. If the euro area inflation data comes in weaker than expected, short-term traders may look to sell rallies from resistance levels. The $1.07 region is a key resistance to watch, and if sellers continue to defend this level, support levels at $1.0632, $1.0648, and $1.0664 could be targeted.
Overall, traders are keeping a close eye on the market direction and are prepared to react accordingly based on the price movements and key resistance levels.