EUR/USD holds technical support level ahead of key events today

Yesterday a technical support level on the EUR/USD was highlighted here. That was at 1.0721 and it represented a 61.8% correction of the move higher in 2024, from the low at 1.0601 to the most recent high, at 1.0916. The actual low seen yesterday was set at 1.0720. So, in essence that technical level did manage to cap the downside. The EUR/USD later closed in the US at 1.0741 and it has not strayed very far from that closing level so far today. Of course there are serious events later today which could determine, if there is another look at that 1.0721 level, or a firmer rejection of any downside beyond it. The first of those is the US May CPI report, due out at 12.30pm GMT and then after that the Fed policy decision at 6pm GMT this evening. Now it is pretty unusual to have that CPI data released on the same day as the Fed policy decision, but that is what we have today. There will be much more to add on all this as the day unfolds. For the time being the EUR/USD is treading water, as traders hold their breath on further action ahead of what could be a very busy day ahead. The EUR/USD is currently trading at 1.0741