Euro Strengthens Amid Dwindling Rate Hike Expectations in the United States

Friday's news, while not necessarily negative, had a significant impact on market sentiment due to falling short of expectations, casting doubts on the strength of the US currency.

As a result, the likelihood of another 25-basis point rate hike by the Federal Reserve has diminished further, with most analysts concurring that the era of interest rate hikes has likely concluded.

This shift in sentiment, coupled with improving conditions in global stock markets, has provided support for the European currency. Despite ongoing tensions in the Middle East, there are currently no immediate signs of escalation.

Today's economic agenda is relatively light, with notable items including the investor confidence index for the European economy and the performance of the manufacturing and services sectors in the Eurozone. Meanwhile, there are no significant announcements scheduled from the United States.

With the exchange rate breaking free from the 1.05 to 1.07 range it had been confined to for an extended period, the possibility of further gains for the euro is promising. However, given the uneventful agenda for today, there is a chance that Friday's scenario could repeat itself.

EUR/USD is at its reversal movement advancing toward the next resistance level at 1.8000 where the 100/200MA is placed as a solid resistance level.  

Resistance 3	Resistance 2	Resistance 1	Support 1	Support 2	Support 3
1.1040	1.0930	1.0800	1.0700	1.0630	1.0550