EURUSD – Bullish trend at risk amid PCE and technical pressure

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EURUSD has just reached the 1.13860 resistance zone – a confluence with the previous peak and former supply area. A weak rebound and a rounding top pattern are gradually forming, indicating weakening buying momentum. The 34 and 89 EMAs on the H4 chart add further pressure from a technical perspective.

If the price continues to be rejected at 1.13860, it may drop toward 1.12670 – which aligns with the ascending trendline support. A break below this level would confirm a clearer bearish trend.

The upcoming Core PCE data is forecasted to rise – indicating inflation remains elevated. This raises the likelihood that the Fed will maintain high interest rates for longer, supporting the USD and weighing on EURUSD.

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