EUR/USD Falls to 1.0521 on ECB's Dovish Stance and Mixed US Data

The EUR/USD pair hit a bottom at 1.0521, aligning with the previous week's lows. This drop came as the European Central Bank (ECB) adopted a more dovish stance, hinting at a possible terminal interest rate amidst economic concerns. Meanwhile, the US Dollar failed to capitalize on better-than-expected US GDP figures, as the Core PCE remained slightly below expectations and employment data raised concerns. Despite these dynamics, the fundamental factors suggest a mixed outlook for EUR/USD, with potential influences from upcoming US Core PCE data.

According to technical analysis, the EUR/USD consolidating on Thursday, approaching the middle band of the Bollinger Bands. Currently, the EUR/USD is trading between the middle and lower bands, indicating the potential for further downward movement. The Relative Strength Index (RSI) is at 43, signaling that the EUR/USD is adopting a bearish bias.

Resistance: 1.0616, 1.0705
Support: 1.0500, 1.0405