EUR/USD pared some of its gains due to profit booking. It hits a intraday high of 1.09205 and currently trading around 1.08876.
The words of ECB Governing Council member Peter Kazimir encapsulate the prudent, data-informed monetary policy of the ECB in the call for prudence while weighing the data received and not acting in haste. This is well captured by ECB's signaled interest rate reductions, including the latest reduction in March 2025, and its shift towards a "meaningfully less restrictive" policy. The ECB policy is driven by 2025 challenges and uncertainties, including deciding the optimal interest rates, and places tremendous emphasis on flexibility and adaptability to changing economic realities
Technical Analysis of EUR/USD
The pair is holding above the short and below the long-term moving average in the 4-hour chart. Near-term resistance is seen at 1.0935; a break above this may push the pair to targets of 1.1000. Major bullish momentum is likely only if prices can break above 1.1000 where levels of 1.1070/1.1150. On the downside, support is seen at 1.0850 any violation below will drag the pair to 1.0750/1.0700/1.0660/1.0600/1.0500/ 1.0460.
Market Indicators and Trading Strategy
Commodity Channel Index (CCI)- Bullish
Average Directional Movement Index (ADX) - Bullish. It is good to buy on dips around 1.0835-38 with a stop-loss at 1.0770 for a target price of 1.0935/1.100.
