EUR/USD bounces back from 1.0800 as preliminary Eurozone Composite PMI for May beats estimates. The ECB is anticipated to reduce interest rates three times by the year-end. The US Dollar edges down on firm Fed rate-cut prospects for September. The major currency pair capitalizes on a decline in the US Dollar and strong Eurozone preliminary PMI numbers for May. The US Dollar Index , which tracks the US Dollar’s value against six major currencies, edges down to 104.
Technical Analysis: EUR/USD revives after testing triangle breakout region EUR/USD bounces back strongly after testing the breakout region of the Symmetrical Triangle formed on a daily timeframe. The near-term outlook of the shared currency pair remains firm as the 20-and 50-day Exponential Moving Averages have delivered a bullish crossover around 1.0780. The 14-period Relative Strength Index has shifted comfortably into the bullish range of 60.00-80.