EUR/USD Trending Up Amid Weaker Dollar and Market Risk Aversion

The EUR/USD saw an upward trend approaching its highest daily close in over a week, despite market risk aversion, driven by a weaker US dollar. Nevertheless, the pair struggled to maintain levels above 1.0600, signaling potential obstacles ahead. Economic data from both Europe and the US played a role in this movement, while the upcoming European Central Bank meeting holds considerable significance as markets anticipate unchanged key rates for the first time in over a year. Federal Reserve Chair Jerome Powell's recent comments indicating a preference for rate stability also contributed to the currency pair's dynamics.

Based on technical analysis, the EUR/USD slightly lower on Friday, moving between the middle and upper band of the Bollinger Bands. Currently, the EUR/USD is trading just above the middle band, suggesting the potential for another lower movement. The Relative Strength Index (RSI) stands at 54, indicating that the EUR/USD is still in neutral bias.

Resistance: 1.0616, 1.0672
Support: 1.0561, 1.0502