FundamentalOverviewThe USD rallied across theboard last week after a slate of strong US data. The focus was mainly on Jobless Claims which beat expectations by a bigmargin with Initial Claims falling to the lowest level since July andContinuing Claims improving further. This triggered a hawkish repricing ininterest rates expectations since the Fed started cutting rates solely due toweaker labour market data. This means that if wecontinue to get stronger labour market data, the Fed could start turning morehawkish again and we might not get another cut in October, or more probably inDecember. Therefore, there’s still plenty of room for the US dollar to appreciatein case of strong data as the market’s pricing remains too dovish. The Fedprojected 75 bps of easing by the end of 2026, while the market is stillpricing 104 bps. The greenback erased allthe gains triggered by last week’s data in the meantime as we are likelyexperiencing a pullback after a very strong rally. Other possible reasonsinclude the government shutdown fears and quarter-end flows. On the EUR side, nothinghas changed in the meantime. The ECB left interest rates unchanged at the lastmeeting as widely expected with limited forward guidance other than the usualdata-dependent approach. President Lagarde made it clear that the central bank finishedcutting rates after she said that growth risks are balanced and thedisinflationary process was over. The ECB is not expected to adjust rates for along time unless we get significant deviation from their inflation target. EURUSD TechnicalAnalysis – Daily TimeframeOn the daily chart, we cansee that EURUSD fell further into new lows last week with the sellers targetingthe major upward trendline. That’s where we can expect thebuyers to step in with a defined risk below the 1.16 support to position for a rally into a new cycle high.The sellers, on the other hand, will look for downside breaks to increase thebearish bets into the 1.1392 level next. EURUSD TechnicalAnalysis – 4 hour TimeframeOn the 4 hour chart, we cansee that we have a minor downward trendline defining the bearish momentum on thistimeframe. The sellers will likely lean on the trendline with a defined riskabove it to position for a drop into the 1.16 support. The buyers, on the otherhand, will look for a break higher to increase the bullish bets into the 1.1830level next. EURUSD TechnicalAnalysis – 1 hour TimeframeOn the 1 hour chart, we can see that we have a minor upward trendlinedefining the current pullback. If the price falls into it, we can expect thebuyers to step in with a defined risk below it to keep pushing into new highs,while the sellers will look for a break lower to increase the bearish bets intothe 1.16 support. The red lines define the average daily range for today.UpcomingCatalystsTomorrow we get the French and Germaninflation reports, the US Job Openings data and the US Consumer Confidencereport. On Wednesday, we have the Flash Eurozone CPI, the US ADP and the US ISMManufacturing PMI. On Thursday, we get the latest US Jobless Claims figures. OnFriday, we conclude the week with the US NFP report and the US ISM ServicesPMI. Keep also an eye on Fed speakers. This article was written by Giuseppe Dellamotta at investinglive.com.