EUR/USD trades above key MAs; bullish bias intact as ECB holds steady and eurozone inflation remains near target.
The euro reached a seven-week high at $1.1780 before retreating slightly to $1.1721. The move came as the dollar softened on Fed expectations, while the euro benefited from firm inflation and record-low unemployment in the eurozone. Although the ECB is expected to hold rates steady on Thursday, market attention will center on policy signals amid relatively stable core inflation.
From a technical view, EUR/USD trades comfortably above both the 50-day and 200-day moving averages, with support at 1.1608 and resistance at 1.1780. The broader setup remains bullish, but any hawkish tone from the ECB could add fuel to the upside. Political developments, including the removal of France’s Prime Minister, are unlikely to trigger sustained euro weakness, according to MUFG analysts.
