EURUSD

While general optimism persists above the 233-day exponential moving average (105.15), the Classic Dollar Index trading below the 34-day average (107.68) highlights short-term reaction expectations. Recent developments have pushed the index's movement below the 107 level, indicating that the reaction process will continue. As the week closes, investors should closely monitor the Retail Sales data coming from the U.S.

In line with recent developments, the EURUSD pair continues to remain above the 1.0375 level, where the 55 and 233-period moving averages are located. The reaction sell-off in the DXY may allow the pair to move towards the 1.0605 barrier. Particularly, the situation at the 1.0480 level will be a crucial indicator of whether the upward trend will persist. If a pressure situation arises, there is a need for sustained movements below the averages to avoid a return to the pair's negative trend.