The currency pair tested 1.1630 last week. However, after reaching the descending trend line, EUR/USD plunged below this level. ECB members have mentioned that inflation will continue to grow in the Eurozone. This gave support to EUR/USD.

We expect the currency pair to stay below the descending trend line. EUR/USD is likely to target 1.1461. Otherwise, EUR/USD will go towards the descending trend line through 1.1630 resistance level.