EUR/USD outlook for Monday

The EUR/USD outlook for Monday, based on the latest analyses and market sentiment from various sources, suggests a cautious but slightly bullish stance:

Technical Analysis: There’s mention of EUR/USD edging higher after a significant drop was contained by strong support levels, indicating a potential for further upward movement if certain resistance levels like 1.0870 are broken. The pair’s recent activity shows it’s testing previous highs, with some analysts expecting a bullish continuation, especially if it breaks through the supply zones above current levels.
Market Sentiment: X posts reflect a mix of expectations. Some traders see the potential for a bullish expansion towards 1.1150, citing engineered equal highs as a precursor for this move. However, there’s also caution about immediate reactions, with suggestions that Monday might be a ranging day, with significant moves expected later in the week due to economic data releases.
Economic Factors: The Euro has been supported by economic data, like the Eurozone’s GDP, which, while not spectacular, provided some backing for the Euro against the Dollar. Upcoming German inflation data could further influence the pair’s direction, with expectations that positive data might bolster the Euro.
Forecasts: Analysts are divided but lean towards a cautiously optimistic view for EUR/USD. There’s an anticipation of a higher close for the week, with the pair potentially testing new highs if market conditions remain favorable, especially with a risk-on mood undermining the safe-haven status of the USD.

Given these insights, for Monday, traders might expect EUR/USD to:

Test Resistance: Look for resistance levels around 1.1050 to 1.1100, with a break above these potentially signaling further gains.
React to Economic Data: The market will be sensitive to any economic releases, particularly from Germany, which could sway the pair’s direction.
Market Sentiment: A continuation of the risk-on sentiment could keep the USD under pressure, supporting EUR/USD.

In summary, while there’s a bullish undertone, immediate movements might be tempered by market caution, with significant directional moves possibly delayed until later in the week due to economic calendar events.