EUR/USD maintained stability above the 1.0900 mark on Wednesday as improving risk sentiment supported the pair. The US Treasury is set to conduct a 10-year note auction later in the day, potentially impacting market dynamics.
After a turbulent start to the week, the US Dollar Index recovered slightly on Tuesday, causing EUR/USD to remain under pressure. However, a positive shift in risk sentiment in the latter part of the day limited the USD’s strength, providing support for the currency pair.
Recent data from Germany revealed that Industrial Production expanded by 1.4% in June, surpassing market expectations. This positive development could influence the pair’s movement in the near term.
Looking ahead, the economic calendar lacks high-impact releases, but the outcome of the US Treasury’s 10-year note auction will be closely monitored. A high-yield result could boost the USD, potentially impacting EUR/USD’s trajectory.
Investor sentiment remains a key factor, with US stock index futures showing gains of up to 1%. Continued risk-on sentiment could limit the USD’s upward potential and provide further support for EUR/USD.
EUR/USD Technical Analysis
EUR/USD has shown resilience above the 1.0900 level, with potential support at 1.0870-1.0860 and 1.0825. On the upside, resistance levels are seen at 1.0960 and 1.1000.
Analysis: Despite initial USD strength, improving risk sentiment and positive economic data have provided support for EUR/USD. The outcome of the US Treasury auction and continued market optimism will likely influence the pair’s movements in the coming sessions. Traders should monitor key support and resistance levels for potential trading opportunities.