The European currency is gaining in value in the EUR/USD pair, correcting after the downward trend in the ultra-short term, which has been observed since the beginning of the week. The instrument is testing 1.1600 for a breakout, while trading participants expect the emergence of new movement drivers.

A fall is possible.

On the daily chart, the upward third wave of the highest level 3 of (А) forms, within which the first entry wave of the lowest level i of 3 ended, and the correctional second wave ii of 3 develops. Now, the wave (a) of ii and the correctional wave (b) of ii have ended, and the downward wave (c) of ii and the wave v of (c) are forming. If the assumption is correct, the EUR/USD pair will fall to the area of 1.1380–1.1060. In this scenario, the critical stop loss level is 1.1726.

The EUR/USD pair remained around 1.1672, as expectations of a gradual rise in inflation, reflecting the impact of US trade tariffs on the region’s economy, were confirmed.

The EUR/USD pair has resumed its upward trend this week and is currently trading around 1.1660. Prices are supported by hints of further easing of monetary policy, which several US Federal Reserve officials have spoken about in the past few days.

The EUR/USD pair is trading in the support area of 1.1570 due to a correction amid the strengthening of the American dollar and weakening investor interest in risky assets.