FundamentalOverview

The USD continues to loseground as the tariffs fears ease. In fact, tonight Trump said that he would rather not use tariffs onChina whichtriggered more weakness in the greenback.

The tariffs risk has beenthe only thing keeping a bid under the US Dollar after the US inflation data,so when that risk eases, the greenback weakens.

On the EUR side, the latestPMIs showed an encouraging rebound in activity whichtriggered a repricing in rate cuts expectations. The market now sees a total of86 bps of easing by year end which is down from 97 bps before the data release.

EURUSD TechnicalAnalysis – Daily Timeframe

On the daily chart, we cansee that EURUSD broke above a key resistance zone around the 1.0450 levelconfirming the change in trend. The buyers piled in more aggressively toposition for a rally into the 1.06 handle next. The sellers, on the other hand,will want to see the price falling back below the 1.0450 level to target apullback into the 1.0350 level next.

EURUSD TechnicalAnalysis – 4 hour Timeframe

On the 4 hour chart, we cansee that we have an upward trendline defining the current bullishmomentum. If we get a pullback into the trendline, the buyers will likely leanon it to keep pushing into new highs, while the sellers will look for a breaklower to increase the bearish bets into the 1.0350 level.

EURUSD TechnicalAnalysis – 1 hour Timeframe

On the 1 hour chart, we cansee that we have another minor upward trendline defining the bullish momentumon this timeframe. The buyers will keep on leaning on the trendline to positionfor further upside, while the sellers will look for a break lower to target thenext trendline. The red lines define the average daily range for today.

UpcomingCatalysts

Todayweconclude the week with the Flash US PMIs.