Today's EUR/USD Analysis - The EUR/USD pair starts the new week on a positive note, moving higher from the previous week's high, which was just below the 1.08 midpoint reached on Friday. The EUR/USD spot price is trading with a slight positive bias around 1.0900 during the Asian session, although no additional buying or bullish confidence is observed. Today's forex news is a summary based on technical analysis from Fxstreet.com.

US Dollar (USD) struggled to maintain its recovery after posting gains over the past two days from the lowest level since May 11. The USD encountered some resistance on Monday, which ultimately provided support for the EUR/USD pair.

S&P Global reported on Friday that business activity in the US dropped to its lowest level in three months in June. This was driven by a slowdown in the growth of the services sector for the first time this year, alongside a deeper contraction in the manufacturing sector.

The impact of this situation, combined with a moderate decline in US Treasury bond yields and positive sentiment in US equity futures markets, has led to a weakening of the US dollar, which is typically seen as a safe-haven asset for investors.

However, the hawkish outlook from the Federal Reserve (Fed) could attract the dollar and limit the upside potential for the EUR/USD pair. Earlier this month, the Fed decided to halt its year-long interest rate hike cycle, although it signaled that interest rates could still rise by 50 basis points by the end of the year.

Traders seem less optimistic about the euro following disappointing data on the Eurozone Manufacturing Purchasing Managers' Index (PMI) released on Friday. This further complicates the European Central Bank's (ECB) policy decisions.

Additionally, Fed Chairman Jerome Powell reiterated that the central bank plans to raise interest rates again this year, though at a "cautious pace," to control high inflation. Powell also emphasized that the Fed does not plan to lower interest rates anytime soon and will wait until inflation is on track to reach the 2% target.

It is important to note that the preliminary S&P Global report showed a sharp decline in business activity in France and Germany, the two largest economies in the eurozone. Furthermore, the Eurozone's HCOB Composite PMI Flash fell to a five-month low, raising concerns about the economic headwinds caused by rising borrowing costs, which contributed to the movement of the EUR/USD pair.

With no significant economic data impacting the market from either the Eurozone or the United States, traders will rely on the speech by ECB President Christine Lagarde on Monday for some guidance. Additionally, the movement of the USD will create short-term opportunities in the EUR/USD pair.

Nevertheless, the focus remains on the release of the US Core PCE Price Index—an inflation measure preferred by the Federal Reserve on Friday. This release will play a crucial role in driving USD movement and help determine the next steps for the spot price.