EUR/USD Breaks Free from Pullbacks and Looks to Bullish Impulse

EUR/USD has gained decently above the 1.0900 hurdle and broken free from two consecutive daily pullbacks, despite increased selling pressure on the dollar. Currently, the focus is on upcoming data releases. The possibility of further tightening by the ECB in May is still on the cards, with investors anticipating a 25 bps rate raise. However, some ECB policy makers have hinted at a larger rate increase in recent sessions.

Later in the day, the ZEW institute for Germany and the euro bloc will release their Economic Sentiment gauge, alongside trade balance figures for the euro area. In the NA session, the spotlight will be on housing data and a speech by FOMC’s M. Bowman.

As we explained yesterday, the price had a pullback to the 61.8% Fibonacci level, which coincided with a strong support area, and the dynamic trendline acted as additional support. Currently, the price is on an upward trend and we are expecting a fresh bullish impulse to emerge.