Fundamental Analysis: The EUR/USD pair has entered a complex phase following the European Central Bank's decision to raise interest rates in an attempt to curb rising inflation. However, a paradox emerges as Europe continues to grapple with more inflation compared to the USA. This discrepancy might lead to a prolonged period of cautiousness or even a pause in rate hikes by the ECB, which could prompt investors to shift their focus away from the European economic landscape towards safer assets like USD or precious metals like XAU.
Tehcnicall Analysis: the price of the EUR/USD is currently navigating within a consolidation zone, displaying hints of bullish weakening that could suggest a potential continuation of bearish sentiment. Nonetheless, it's important to note that this doesn't yet confirm a bearish trend. A breakout from the consolidation could trigger one of two scenarios, with outcomes that could significantly impact the direction of the currency pair. Targets: 1.11390, 1.12300 Bullish Scenario Targets: 1.08360 Bearish Scenario
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