EURUSD could see a reversal below 1.08200

Technical perspective:
EURUSD is nearing the upper boundary of its descending channel, aligning with significant resistance at 1.08200, marked by the 61.8% Fibonacci retracement and the 50% Fibonacci extension. The price remains below the Ichimoku cloud, indicating potential for a reversal.
If EURUSD reverses below 1.0820, it could extend its decline toward the 1.0680 support level. A breach below 1.0680 might prompt a further slide towards the channel's lower boundary at 1.05200.
Conversely, a breakout above 1.0820 could trigger additional upside momentum, potentially leading to a retest of resistance around 1.09200.


Fundamental Perspective:
The recent rise in EURUSD can be attributed to the weakening US dollar following softer US economic data and the Federal Reserve's acknowledgement of progress in inflation, heightening expectations of a rate cut in September. However, this uptick might be temporary, given the Fed's cautious stance, awaiting more evidence of cooling inflation alongside a robust job market. In the Eurozone, initial June data indicates annual inflation easing to 2.5%, meeting expectations, although core inflation unexpectedly held steady. ECB President Lagarde highlighted that inflation risks have not sufficiently diminished at the ECB Forum.