EUR/USD Forms Bearish Rising Wedge Amid Mixed Eurozone Data and US Dollar Strength

EUR/USD Faces Pressure After French CPI Disappoints Amid Optimism on EU-US Trade Talks

EUR/USD declined to 1.1321 following weaker-than-expected French Consumer Price Index (CPI) data, weighed down by a cautious market mood despite positive progress in EU-US trade negotiations. EU Trade Commissioner Maros Sefcovic and French President Emmanuel Macron both confirmed constructive discussions with US officials, including a “good call” between Sefcovic and US Secretary of Commerce Lutnick, and a positive exchange between European Commission President Ursula von der Leyen and US President Donald Trump. Trump himself described the talks as “very nice,” with a delay in tariff impositions allowing the two sides to continue working toward a trade deal.

On the technical front, daily momentum indicators are signaling uncertainty, with the Relative Strength Index (RSI) falling from near overbought levels, indicating weakening upward momentum. Price action shows the formation of a rising wedge pattern, which is generally regarded as a bearish reversal signal. This pattern suggests that EUR/USD could face downward pressure in the near term if the wedge completes and breaks lower.

In summary, while positive trade talks provide some support to the Euro, disappointing inflation data and technical signals point to potential caution ahead for the EUR/USD pair. Investors will be watching closely for further developments both on the economic front and in the ongoing trade negotiations.