EUR/USD: 1.09 Breakout Still in the Cards - ECB Decision, CPI Could Seal the Deal

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EUR/USD: 1.09 Breakout Still in the Cards - ECB Decision, CPI Could Seal the Deal
US Dollar Index Futures
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Forex Analysis by Investing.com (Damian Nowiszewski) covering: EUR/USD, US Dollar Index Futures. Read Investing.com (Damian Nowiszewski)'s latest article on Investing.com

EUR/USD 's 1.09 breakout remains likely ahead of the Eurozone CPI and ECB decision.Eventually, it will attempt to break out above 1.09 once again.

This sets the stage for a potential rate cut in September, barring negative surprises in July's data. The next Fed meeting is scheduled for late July, and a cut is unlikely at that time. Thursday will see the ECB will decide on the monetary policy. With previous indications pointing towards unchanged interest rates, the Council aims to evaluate the economic impact of recent decisions.Despite the recent test around the 1.09 region, where local highs remain, demand-side momentum continues to favor the bulls. Key resistance lies at the 1.09 level, a breach of which could target March's peak near 1.0980.

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