USD:The US dollar has recently come under some pressure as Treasury yields dropped significantly following the higher than expected US inflation data last week. The reaction might seem illogical as higher inflation should lead to higher interest rates, but the market might be starting to worry about growth. If economic activity deteriorates, the Fed might be forced to keep a hawkish bias due to persistent inflationary pressures. This could put further pressure on economic growth and eventually require rate cuts. In fact, further out the curve, we saw a slightly dovish repricing in interest rates expectations as the total expected tightening by the end of 2027 fell from 80 bps to 70 bps despite hot inflation and no changes on the geopolitical side. If the market’s focus shifted to growth concerns, then the US Flash PMIs on Friday will be a key test. Strong data could quell those fears and give the US dollar a boost. A soft report, on the other hand, will likely increase growth concerns and put further pressure on long-term Treasury yields and the greenback.EUR:On the EUR side, the probabilities of an ECB rate hike in October dropped sharply following the bond market woes and the widening of the French-German spread to the highest levels since the European debt crisis. Traders still expect the ECB to deliver another rate hike in December, with an 87% chance priced in, as elevated energy prices continue to pose upside inflation risks. Further out the curve, the market sees two more rate hikes next year before rate cuts coming in 2028. The euro will likely remain sensitive to developments in the bond market, particularly the French-German spread. Tomorrow, we have a key budget vote in France. The National Assembly is scheduled to hold a formal vote on the first part of the budget bill, covering government revenues, after parliamentary questions. The full budget vote is scheduled for November 17.Tomorrow's vote matters as a test of the government's ability to deliver fiscal consolidation. A smooth passage would offer some relief and give the euro a boost, while a rejection or major concessions that weaken the deficit-reduction plan could put further pressure on French bonds and the euro. EURUSD TECHNICAL ANALYSIS – DAILY TIMEFRAMEOn the daily chart, we can see that EURUSDhas been forming a bottom recently, although downside risks remain. If we get another push to the downside, we can expect the buyers to step in around the 1.1067 level, with a defined risk below it, to position for a correction into the downward trendline around the 1.15 handle. The sellers, on the other hand, will look for a break lower to increase the bearish bets into the 1.08 handle next.EURUSD TECHNICAL ANALYSIS – 4 HOUR TIMEFRAMEOn the 4 hour chart, we have a strong resistance zone around the 1.1275 level where the price got rejected from several times in the past couple of weeks. If we get another push into the resistance, we can expect the sellers to step in, with a defined risk above the resistance, to position for a drop into new lows, with the 1.1067 as the first target. The buyers, on the other hand, will look for a break higher to pile in for a rally into the 1.15 handle next.EURUSD TECHNICAL ANALYSIS – 1 HOUR TIMEFRAMEOn the 1 hour chart, we have a minor downward trendline defining the current pullback from the resistance. The sellers will likely continue to lean on the trendline, with a defined risk above it, to keep pushing into new lows. The buyers, on the other hand, will look for a break higher to start positioning for a break above the resistance. The red lines define the average daily range for today.UPCOMING CATALYSTSTomorrow we have a key budget vote in France. On Thursday, we get the latest US Jobless Claims figures. On Friday, we conclude the week with the Eurozone and US Flash PMIs. This article was written by Giuseppe Dellamotta at investinglive.com.