Persistent bearish trend with key support at 1.0723. Awaiting US CPI data, potential shift towards 1.09 resistance if inflation underwhelms, while central bank policies continue to influence market dynamics.

• The EUR/USD exchange rate has been under pressure in 2024 trading but is unlikely to fall below 1.0723 during this week unless we receive a strong report on US inflation.
• In general, the US dollar has been strong this year, and the markets seem happy to shed some of the recent strength; In fact, EUR/USD rose for four consecutive days last week in a price action that indicates a stressful uptrend for the US dollar in the short term. 

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We now note that support for EURUSD comes in at the December low of 1.0723, which is not far from current levels of around 1.0780. To be sure, the broader picture continues to be one of outperformance for the US dollar and therefore any strength in the EUR/USD will remain limited to a multi-day time frame. Given the significant resistance to expectations of a US Fed rate cut that we have seen so far in 2024, we expect another potential decline in the EUR/USD rate over the coming weeks. 

Will the Price of the Euro Rise in the Coming Days? 

In this regard, Fouad Razaqzadeh, market analyst at City Index, says: “Currently, the EUR/USD pair has found support at its lowest level in December at 1.0723, although there is still a good possibility that it will break below this level soon.” “Under the current conditions, I would only consider bullish trades on EUR/USD if we see a clear bullish reversal pattern emerge first, or if there is a potential breakout above the recent high, near the 1.09 resistance, to negate the prevailing bearish trend in the pair,” he added. EUR/USD. 

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