**BREAKING: EUR/USD Rebounds Above 1.1350 But Faces Bearish Pressure**
The EUR/USD pair climbed into positive territory around 1.1370 during early European trading Thursday, recovering from recent losses. However, the technical outlook remains bearish as the pair trades below critical resistance levels. The modest rebound comes despite mounting pressure from unexpectedly hawkish signals out of Washington last week.
Newly appointed Federal Reserve Chair Kevin Warsh delivered a surprisingly aggressive monetary policy message that has fundamentally shifted market expectations. Traders are now pricing in a potential US interest rate hike as early as September, significantly faster than previously anticipated. This hawkish pivot is strengthening the dollar and capping upside potential for the euro.
The pair’s inability to break through key resistance suggests limited conviction behind the current bounce, with the broader trend remaining dollar-supportive as rate differential expectations widen in favor of US assets.
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FXnCO Insight
** Traders should treat EUR/USD rallies as potential selling opportunities until the pair decisively breaks above resistance, as accelerated Fed tightening expectations continue to favor dollar strength through Q3.
Source: FXStreet