EUR/USD Update: Euro Rebounds From Weekly Lows but Struggles at 1.1600

Euro rebounds from weekly lows but struggles to reclaim 1.1600 vs USD. Read key drivers, technical levels and upcoming data that could move EUR/USD today.

The Euro staged a modest recovery after dipping to weekly lows, but EUR/USD is finding it difficult to push above the psychological 1.1600 barrier. Traders are watching closely as the pair attempts to shake off recent weakness against a broadly firm USD.

Technical resistance at 1.1600 has proven stubborn. Short-term charts show the 1.1600 zone acting as a cap, while immediate support sits near recent weekly lows around 1.1500–1.1520. Momentum indicators are mixed, suggesting a range-bound Forex environment until a clear catalyst emerges to break the stalemate.

Fundamentals are keeping traders cautious. Diverging central bank narratives — with the ECB hinting at patience on rate cuts and the Federal Reserve maintaining a hawkish tone — continue to influence EUR/USD. Strong U.S. economic data tends to lift the USD, compressing the Euro’s upside potential. Conversely, any soft U.S. releases or firmer-than-expected Eurozone numbers could give the Euro room to reclaim lost ground.

Market sentiment and risk flows are also relevant. Safe-haven demand often benefits the USD, while equity strength can help risk-linked currencies like the Euro. Upcoming economic data — including Eurozone PMI releases, ECB minutes, and U.S. inflation or payrolls — could be the key triggers that decide whether EUR/USD clears 1.1600 or slides back toward the weekly lows.

Traders monitoring technical setups should note that a decisive break above 1.1600 could open targets around 1.1650–1.1700, while failure to hold support near 1.1500 may expose lower levels near 1.1450. Keep an eye on volume, intraday ranges, and correlation with USD price action for confirmation before committing to directional positions.

In summary, the Euro’s rebound from weekly lows shows tentative strength but not yet a convincing breakout. With 1.1600 acting as a clear resistance, EUR/USD may remain range-bound until new economic data or central bank cues shift market sentiment. Forex traders should watch technical levels, monitor ECB and Fed commentary, and prepare for potential volatility around major data releases.

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