In today’s analysis of EUR/USD, we observed a breach below the key area of confluence at 1.0730, indicating a potential continuation of the downtrend towards the psychological support level of 1.0700. On the upside, resistance is anticipated around 1.0810. The fundamental aspect reveals that Germany’s Q1 GDP confirmed a technical recession, dampening optimism among euro bulls in a risk-averse environment. Additionally, the speeches by European Central Bank (ECB) officials could shed light on the recent German GDP report and its potential impact on the hawkish narrative. The upcoming US GDP release and statements from the Fed’s Collins may provide further insights and influence future interest rate decisions.

By analysing the technical and fundamental factors, we gain valuable insights into the potential trajectory of EUR/USD. Understanding the price action dynamics and the influence of economic indicators and central bank communications helps traders and investors make informed decisions in the EUR/USD market.