The euro could extend its gains against the dollar toward $1.10 if PCE price data on Friday come in on the weak side and keep the bond rally intact, Swissquote said.
“The current cup and handle formation in the EUR/USD is a bullish technical formation and could be interesting for entering fresh long positions.”
Traders should be wary, however, that euro strength against the dollar isn’t fundamentally deserved, with a strong U.S. economy contrasting with weak eurozone growth and falling inflation, it said.