EUR/USD has clearly regained its purchasing power after a three-day bearish streak. The dollar fell slightly after a statement from Federal Reserve member Christopher Waller, who called for a further 0.25% rate cut at the next meeting due to risks threatening the U.S. labor market, fueled the pair’s gains.

In Europe, after political risks in France subsided, the euro received additional support, helping the euro against the dollar to escape from the low valuation range and rise to the 1.1590 level again.

On the 4-hour chart, prices are approaching the uptrend line that has been extending since the beginning of the month. The 1.1560 level is a strong intersection between the trendline and the nearby support area. If the price reacts positively at this level and rebounds upwards, the first target could be towards the 1.1630 area, which is an important resistance level and the location of previous selling.

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