EUR/USD Challenges Positive US Data and Treasury Yields, Awaits

The EUR/USD pair defied positive US economic data and surging Treasury yields on Tuesday, reaching a high of 1.0595 before retreating slightly. The Eurozone exhibited encouraging signs with the ZEW survey reporting an improved Eurozone Sentiment Index, while the German ZEW also exceeded expectations. The European Central Bank (ECB) is expected to maintain its interest rates unchanged next week. Although both US and European bond yields increased significantly, the robust US data may limit the EUR/USD pair's upside potential, as it experienced a brief drop before reversing course. Upcoming economic indicators and the ECB meeting will likely continue to influence this currency pair.

Based on technical analysis, the EUR/USD slightly higher on Tuesday, pushing towards the upper band of the Bollinger Bands. Currently, the EUR/USD is trading just below the upper band, suggesting the potential for another higher movement. The Relative Strength Index (RSI) stands at 55, indicating that the EUR/USD is still in neutral bias.

Resistance: 1.0616, 1.0655
Support: 1.0557, 1.0502