EUR/USD is experiencing heightened volatility as traders position ahead of key economic releases, with the pair testing resistance near 1.0875. The US Dollar Index has shown signs of consolidation after recent gains, creating opportunities for euro buyers on dips. Meanwhile, the FTSE 100 index faces pressure from global risk sentiment shifts, affecting GBP crosses. Technical indicators suggest EUR/USD remains in a bullish short-term structure above the 1.0820 support level, with momentum indicators pointing to potential upside continuation. Traders are closely monitoring upcoming ECB policy signals and US economic data for directional cues. The combination of dollar weakness and improving European economic sentiment could push EUR/USD toward the 1.0900 psychological resistance. Risk management remains crucial as volatility is expected to increase around major data releases this week.
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