The euro has been a bit interesting these days, slipping from 1.1740 on Thursday to 1.1719 now, but still holding above the 1.1700 line. It seems that the inflation data from the Eurozone has indeed given support to the bulls, and the hawkish remarks from the President of the European Central Bank have also helped steady sentiment. However, today is a public holiday (Labor Day), so trading volume is relatively light, and the upside hasn’t continued to expand.

I’ve noticed that the U.S. stock market has been performing well during earnings season, with new highs in the equities market boosting risk appetite, which puts some pressure on the euro. But the situation in the Middle East remains a risk factor—oil prices are stuck above $100, with Brent crude around $113—which is a long-term burden for Eurozone economies.

From a technical perspective, EUR/USD is currently ranging between 1.1650 and 1.1750, with clear resistance overhead and support below. The RSI is showing a bit of improvement, but momentum is still relatively weak; it feels like we may need more clearly defined signals to judge the next direction. If the euro breaks below 1.1650, it could test lower support levels.