FTSE 100 Rallies While EUR/USD Tests Critical 1.0900 Resistance

EUR/USD is testing the psychologically important 1.0900 level, gaining 0.2% in early European trading as the dollar consolidates recent gains. The pair faces strong resistance at this level, which coincides with the 50-day moving average and previous support-turned-resistance zone. Meanwhile, the FTSE 100 has surged 0.8% to 7,485, benefiting from weakness in sterling and positive earnings reports from major constituents. GBP/USD remains under pressure near 1.3000, down 0.3% as traders position ahead of the Bank of England rate decision. The Dollar Index holds steady at 104.60, finding support from rising US Treasury yields. Technical analysis suggests EUR/USD needs to clear 1.0920 convincingly to target 1.0950, while failure could see a retest of 1.0850 support. Traders are advised to watch for potential range-bound action between 1.0850-1.0920 until a catalyst emerges from either ECB officials or US economic data releases.