Ella 
EUR/USD continued its consolidation trend for the second consecutive day on Wednesday, with the entire Asian market still fluctuating within a narrow range around 1.0800.
EUR/USD edged higher on Tuesday as the U.S. dollar (USD) weakened slightly due to weak ISM services PMIs from the U.S., but the momentum faded near a one-week high near 1.0875. Traders appeared reluctant to make aggressive bearish bets against the dollar, preferring to wait for greater clarity on the Fed’s path to interest rate cuts. Therefore, Fed Chairman Powell’s congressional testimony will play a key role in influencing USD price dynamics and provide new impetus for EUR/USD.
In addition to this, traders will also take cues from U.S. macro data on Wednesday, including U.S. ADP employment changes and JOLTS job openings data. The focus will then turn to Thursday’s European Central Bank decision and Friday’s key U.S. monthly employment data, commonly known as the non-farm payrolls report (NFP). Meanwhile, reduced bets on more aggressive easing from the European Central Bank may continue to boost EUR/USD and help prevent EUR/USD from consolidating lower.
From a technical perspective, EUR/USD has found resistance at the 1.0900 mark on several occasions recently, making bullish traders cautious. Therefore, it would be prudent to wait for some follow-through buying above the aforementioned levels before traders start positioning for an extension of EUR/USD’s strong rebound from sub-1.0700 levels (or the year’s low hit on February 14). However, the fundamental backdrop suggests there is minimal upside resistance for EUR/USD, supporting the prospect of some bargain hunting.
