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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
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Sign InAs the single currency attempts to recover from recent lows, ING analysts expect Euro rallies against the US Dollar to lose momentum below the 1.16 level. The EUR/USD pair is currently nearing its weekly high of 1.1435 as bearish momentum begins to fade. According to reports, this upward movement is viewed as a relief rally rather than a definitive trend reversal, given the significant technical hurdles ahead.
This price action coincides with mixed economic signals from the Eurozone, where the EU Economic Sentiment index reached 95 in June, exceeding the forecast of 94.3 per market data on June 29, 2026. Conversely, French inflation slowed to 1.8% year-on-year, coming in below the 2.1% estimate, which may dampen expectations for aggressive ECB policy relative to the Federal Reserve.
Traders should watch the 1.16 resistance level closely as a primary technical barrier that could terminate the current recovery phase. Key upcoming catalysts include a scheduled speech by ECB President Christine Lagarde and the impact of the recently released Chinese Manufacturing PMI, which stood at 50.3 on June 30, 2026, influencing broader currency market sentiment.