EUR/USD Strategy - ECB Officials Take Hawkish Stance, EUR/USD Short-Term Rebound

EUR/USD Strategy - ECB Officials Take Hawkish Stance, EUR/USD Short-Term Rebound

Fundamental Analysis:

Yesterday, US economic data showed steady performance, but it failed to provide a positive boost for the dollar. Additionally, hawkish remarks from European Central Bank (ECB) officials limited the dollar's momentum. ECB official Isabel Schnabel stated that excessive rate cuts should be avoided, as borrowing costs are nearing a level that no longer suppresses the economy, suggesting that further rate cuts could backfire. This hints that the ECB’s rate-cutting cycle may be nearing its end, which has supported the euro's rebound.

Technical Analysis:

On the hourly chart, EUR/USD shows a rebound to new highs following a period of consolidation, indicating stronger buying pressure. If subsequent pullbacks do not break the support level, it could help sustain the rebound. Therefore, opportunities to buy on dips are worth considering.

Trading Recommendations:

Enter a long position at 1.0544,
with a stop-loss below 1.0505. Target: 1.0597–1.0607.

Support Level: 1.0544 Resistance Level: 1.0607

Disclaimer: Trading involves risks. The suggestions provided are not guarantees of profit. Investors should assess their capital and position management carefully.