Jakarta, GIC Trade – The euro traded around $1.07, remaining near a two-month low of $1.0633 touched on May 31, as investors weighed easing inflationary pressures in the eurozone against hawkish comments from ECB President Lagarde. 
 
On the one hand, the data showed a larger-than-expected decline in consumer and producer prices, suggesting that the European Central Bank (ECB) may reach its peak interest rate in September, earlier than previously forecast for December. 

However, Lagarde argued that eurozone inflation remains high, signaling the need for further monetary policy tightening. Vice President Luis de Guindos and Bank of France Governor Francois Villeroy de Galhau mentioned that interest rate hikes are starting to have an impact on inflation and that future interest rate hikes will be minimal in magnitude.
 
The single currency maintained a volatile performance so far this week and is now motivating EUR/USD to trade with a slight upside around the 1.0700 region in Thursday's trading.
 
The absence of a strong driver for the pair's price action continues to support the ongoing directionless pattern, although more cautious trading is expected to emerge in connection with the release of important US inflation figures and the FOMC meeting, both of which will be released next week.
 
Fundamentally, consumer and producer inflation rates remain high providing room for the European central bank to tighten monetary policy further, thus pushing the euro higher. Then how technically, see the following analysis:
 
Technical Analysis

 
EUR/USD on the 1-hour period tried to move up, touching the resistance level at 1.07366 until heading to the next resistance level at 1.07700. The upward trend can also be seen from the FXBot template, where the EUR figure is higher by 7.5 than the USD figure of 2.7. While the bullish bias is also supported by a buy signal indicated by a green arrow.

Forex Today Analysis is a fundamental and technical view used by the author, not a suggestion or a solicitation. To get more information click on the image below.