EURUSD

The euro is trying to extend higher against the US dollar but is finding life difficult despite the greenback showing signs of near-term weakness. Technically, the short-term trend remains supportive, but if the US dollar regains upside strength this week, we could see a minor pullback in the euro.

Key Indicators

• After the strong rebound, the 4-hour chart reveals weak upward momentum, showing signs of exhaustion on lower timeframes. Therefore, a healthy pullback could happen before the next push higher.

Fundamental Context

The currency pair has been consolidating sideways over the past few trading hours following its recent rebound as investors await the US inflation report.