EUR/USD is on the rise today as lower U.S. yields are weighing on the dollar. This price action is supporting bullish technical signals, but confirmation may come from upcoming U.S. pricing and employment reports.
On the daily charts, gains from the June 26 low are consolidating, with EUR/USD trading above various daily moving averages and near the daily cloud top. Both monthly and daily RSIs are showing upward momentum without being overbought, indicating potential for further gains.
With bullish technical indicators pointing towards upside potential, EUR/USD long positions are waiting for confirmation from U.S. data. Key reports on June CPI, PPI, and weekly jobless claims are expected to provide clarity. If these reports show disinflation and a weaker job market, EUR/USD’s rally could continue.
A potential scenario of falling U.S. yields and a narrowing German-U.S. spread could further weaken the dollar against the euro. Should the data validate the bullish signals, EUR/USD may test resistance levels at 1.0980/1.1000.
Overall, the current market dynamics suggest a positive outlook for EUR/USD, pending confirmation from upcoming U.S. economic indicators.