EUR/USD stands tall as US Dollar bleeds amid Trump's attacks on the Fed

💡 DMK Insight

EUR/USD’s bounce from 1.1620 signals potential bullish momentum, but caution is warranted. The pair’s rise to 1.1690, a 0.4% increase, suggests a short-term recovery after hitting one-month lows. Traders should watch for resistance around 1.1700, which could cap further gains. If the pair breaks above this level, it might attract more buying interest, especially from institutional players looking to capitalize on a potential trend reversal. However, the broader market context remains shaky, with economic indicators like U.S. inflation data looming, which could impact the dollar’s strength. A pullback below 1.1620 could reignite bearish sentiment, making it crucial to monitor this level closely. Here’s the thing: while the bounce is encouraging, it’s essential to consider the volatility that could arise from upcoming economic releases. Keep an eye on the daily chart for any signs of reversal patterns or increased volume, which could indicate the strength of this move.