Euro Rally Pauses as Markets Await Key EU and US Economic Data Summary

Summary:

After a strong rally in recent weeks, the euro has entered a corrective phase as market attention shifts toward upcoming key economic data from both the Eurozone and the United States. Ahead of major macroeconomic releases, EURUSD is likely to remain range-bound in the short term, while the stabilization of the US dollar and ongoing profit-taking have also limited further upside in the euro.

BUY EURUSD

EXP

TRADING

1.16024

Entry Price

1.20390

1.13500

1.15946 -0.00113 -0.10%

0.0

Pips

Flat

1.13500

Exit Price

1.16024

Entry Price

1.20390

Fundamentals

The euro’s recent rally has lost momentum, with the pair retreating back into its previous trading range after a sharp advance. This suggests that market sentiment is becoming increasingly cautious as investors await a series of important economic releases from both the Eurozone and the United States.

The previous decline in the US dollar had fueled a strong rally in the euro. However, as short-dollar positions began to unwind and traders locked in profits, the greenback staged a modest recovery, placing renewed pressure on non-dollar currencies such as the euro and the British pound.

Looking ahead, the direction of EURUSD will remain heavily dependent on incoming economic data and shifting interest rate expectations. If Eurozone data improves while signs of slowing US economic momentum emerge, the euro could regain support. Conversely, continued strength in US data may reinforce dollar demand and limit further gains in EURUSD.

Euro Rally Pauses as Markets Await Key EU and US Economic Data Summary_1

Technical Analysis

Technically, EURUSD remains neutral intraday and continues to consolidate above the short-term low at 1.1607. As long as the 1.1788 resistance level remains intact, downside risks are likely to persist.

From a wave-structure perspective, the rally from 1.1408 may have completed a corrective three-wave rebound. A decisive break below the 1.1605 support level could expose the pair to further downside toward the 1.1550 demand zone.

However, if strong buying interest emerges around the 1.1550 region, bearish momentum could fade, potentially triggering a stronger rebound and another test of the 1.1788 resistance area. A confirmed breakout above that zone would suggest that the broader bullish structure is resuming, opening the door for a larger upside extension.

Trade Recommendation

Trade Direction: Buy

Entry Price: 1.1585

Target Price: 1.2039

Stop Loss: 1.1350

Valid Until: 2026-06-18 23:55

Support Levels: 1.1555、1.1507、1.1469

Resistance Levels: 1.1666、1.1788、1.1850

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