EUR/USD rebounds to test 1.1518-1.1529 swing area on US data softness

EUR/USD has rebounded from session lows to retest the critical 1.1518-1.1529 swing area, supported by softer US economic data that triggered short covering. The pair's recovery comes despite US 10-year yields rising 1.3 basis points to 4.113%, suggesting mixed market dynamics. While specific economic data details weren't provided, the market's interpretation points to weaker-than-expected US indicators that reduced dollar strength. US equity markets remain off their highs but have recovered from session lows, indicating cautious risk sentiment. The 1.1518-1.1529 zone represents a key technical battleground where previous support has turned into resistance. A decisive break above this area could signal further upside potential toward 1.1550-1.1600, while failure to clear this hurdle may result in renewed selling pressure. Traders should monitor upcoming US data releases and any shifts in Federal Reserve rate expectations for directional cues.