EUR/USD Drops Below 1.0600 as Focus Shifts to ECB and US Data

The EUR/USD currency pair faced a second consecutive day of declines, dropping below the 1.0600 mark, driven by the strength of the US Dollar. Market attention now shifts to the European Central Bank's (ECB) upcoming meeting and significant US economic data releases. Notably, the German IFO Business Survey displayed positive results, while the ECB is expected to maintain unchanged interest rates amid concerns about slowing inflation and subdued economic activity. Additionally, robust US economic data could further bolster the US Dollar, while any negative surprises may trigger a correction in the currency pair.

According to technical analysis, the EUR/USD moved lower on Wednesday, approaching the middle band of the Bollinger Bands. Currently, the EUR/USD is trading between the middle and lower bands, indicating the potential for further downward movement. The Relative Strength Index (RSI) is at 39, signaling that the EUR/USD is adopting a bearish bias.

Resistance: 1.0616, 1.0705
Support: 1.0500, 1.0405