The EUR/USD pair, which has embarked on a bullish trajectory since February 14, encountered hurdles today as it relinquished some of its intraday gains. The Asian session witnessed a surge in the pair, predominantly driven by a weaker US Dollar (USD) amid subdued US Treasury yields. However, the Euro faced headwinds amidst market caution over global interest rate movements, although China’s efforts to bolster its economy lent some support to the single currency.

From a technical perspective, EURUSD faced resistance after the test of the upper bound of the key medium-term bearish corridor. The fact that the price aborted the move higher indicates that the bearish trend remains intact. However, continued consolidation near the upper boundary of the channel or an attempt at repeated testing would signify that selling resistance grows fragile and a breakout may trigger a cascade of buys that will put under pressure the next important resistance area located near 1.09:

Traders are on edge awaiting the release of the Federal Open Market Committee (FOMC) Minutes, scheduled for later today. These minutes are expected to offer valuable insights into the Federal Reserve’s stance on interest rates. Market sentiment has notably shifted, with the probability of a March rate cut now at a mere 6.5%, and eyes turning towards potential easing measures starting in June, carrying a likelihood of 55%:

With the Euro facing pressure, attention turns to crucial economic indicators. The Eurozone consumer confidence data for February is eagerly awaited, with expectations leaning towards a modest improvement. Moreover, the release of the HCOB Purchasing Managers Index data from the Eurozone and Germany on Thursday will provide further clarity on the economic landscape.

The Pound Sterling (GBP) grappled to sustain its gains amidst mixed signals from Bank of England (BoE) officials. Governor Andrew Bailey acknowledged market expectations for rate cuts as reasonable, yet refrained from specifying the timing or magnitude of policy adjustments. Deputy Governor Ben Broadbent emphasized the central bank’s focus on the duration of restrictive monetary policy, while policymaker Swati Dhingra underscored the potential downsides of maintaining high-interest rates.

The technical picture of GBPUSD suggests the pair retains modest upside potential, with the primary buying target located near 1.27 level: