EUR/USD tests resistance after breaking 100-hour MA on hawkish ECB outlook

EUR/USD has climbed above its 100-hour moving average following the ECB's latest policy meeting, testing key resistance levels as traders digest hawkish inflation projections. The central bank maintained current rates but revised 2026 inflation forecasts higher, with both headline and core inflation now expected to decline more gradually toward the 2% target. The upward revision stems primarily from persistent services inflation, while growth projections also improved modestly. Staff forecasts indicate inflation will remain elevated longer than previously anticipated, supporting a cautious approach to future rate cuts. The pair faces immediate resistance at the recent swing high, with momentum indicators suggesting further upside potential if this level breaks. Traders are positioning for a potentially slower pace of ECB easing in 2025, which could provide additional support for the euro against the dollar in coming sessions.