EURUSD continues to rise as USD weakness persists

As US Dollar weakness persists, the EURUSD pair remains strong and continues to rise, recovering from the previous day's pullback and hovering around the mid-1.1000s. The overall weakness of the US Dollar and hawkish expectations surrounding the ECB support the Euro pair, even as the US reports mixed data. The anticipated release of Q1 GDP and the possibility of a 0.50% rate hike during the May monetary policy meeting further add to the attractiveness of the Eurozone's central bank compared to its US counterpart.

US Data Fails to Offset European Economic Optimism

Although recent data shows that US Durable Goods Orders increased in March, concerns arising from previously released Consumer Confidence data persist. Furthermore, weaker US PMIs compared to their European and German counterparts imply greater economic optimism in Europe. This economic optimism and cautious optimism around US debt ceiling negotiations strengthen the Euro pair, even as political disagreements between Republicans and Democrats persist.

First Republic Bank's Decline Outshadows Tech Giants

Strong earnings reports from Microsoft and Alphabet Inc. keep Nasdaq steady, but growing concerns due to First Republic Bank's share price drop weigh on market sentiment. This decline, following a 50% decline the previous day, encourages EUR/USD bulls, even as the market remains cautious.

EUR/USD technical outlook shows bullish trend

The EUR/USD pair reached its initial target of 1.1075, encountering strong resistance and displaying a temporary bearish trend. However, the price is now showing positive signs, attempting to breach this level and set its sights on the next target of 1.1185. The EMA50 continues to provide underlying support for the price, suggesting further gains in the upcoming sessions within the bullish channel visible on the chart.

EUR/USD Faces Bearish Rebound if Below 1.1075

While the technical outlook for the EUR/USD pair remains bullish, failure to surpass the resistance at 1.1075 could cause the price to rebound bearishly and test the 1.0980 – 1.0945 range before any new upward movement. Traders should keep a close eye on this level to assess the potential direction of the Euro pair.

Forex Trader's Strategy

For forex traders looking to take advantage of the current trend in the EUR/USD pair, it is important to consider strategies such as going long on the Euro and shorting the US Dollar, using technical analysis tools to identify potential entry and exit points, and staying informed on market sentiment and news developments. While the current trend may present opportunities for profit, traders should also carefully assess their risk tolerance and trading strategy to account for potential volatility and unforeseen events that could impact the forex market.