29.11.202415:05 Forex Analysis & Reviews: EUR/USD: Signs Indicate the Pair Might End the Week with Gains

Today, the EUR/USD pair is regaining positive momentum following a modest decline the previous day. The pair is now moving closer to its weekly high. Spot prices remain below the key psychological level of 1.0600. A decisive break above this level could facilitate the pair's continued recovery from last Friday's two-year low.

On the U.S. dollar side, despite efforts to build on prior gains, the greenback has faced resistance, falling to a fresh two-week low.

This weakness is attributed to expectations of a 25 basis point rate cut by the Federal Reserve in December, which has been supporting the EUR/USD pair's upward trajectory. However, euro bulls are exercising caution as they await Eurozone consumer inflation data, which could influence the European Central Bank's (ECB) policy decisions and the pair's direction.

Hawkish remarks from Isabel Schnabel of the ECB have bolstered the euro by suggesting that aggressive monetary easing is unlikely in December. Nonetheless, the market still factors in a slight probability of a 50 basis point rate cut next month, which limits the pair's upside potential.

Germany's economic growth data, released on Thursday and below expectations, highlights the need for caution when considering euro purchases at this stage.

Additionally, geopolitical risks and inflationary pressures are helping the U.S. dollar maintain its status as a safe-haven currency.

Given this, traders in the EUR/USD pair should wait for a definitive break above the 1.0600 level and sustain trading beyond it before committing to long positions.

Nevertheless, indicators suggest that spot prices may break their three-week losing streak and close the week with gains. However, as long as oscillators remain in negative territory and the 1.0600 level remains unbroken, euro bulls should exercise caution.