Fundamental analysis of EUR/USD

The EUR/USD pair is showing signs of vulnerability, especially after failing to sustain the upward momentum from the previous day's positive movement. Nevertheless, the pair still managed to hold above the 1.06000 mark. 
The pair's trajectory remains heavily influenced by the US Dollar price dynamics, with a particular focus on the Federal Reserve (Fed) decisions. One of the key factors explaining the strength of the US Dollar is the expectation of further tightening of monetary policy by the Fed. This is supported by high yields on US Treasury bonds, which makes the dollar a more attractive asset. 
On the other hand, the probability that the European Central Bank (ECB) will continue to raise interest rates seems to be gradually decreasing. German consumer inflation data confirms this sentiment, with the rate of inflation falling to 3.0% in October from 4.3% year-over-year. This slowdown, combined with economic indicators, economic and other economic conditions, points to the possibility that the ECB's interest rate hike cycle is about to end. 
Investor attention is currently focused on the Fed's stance, especially given the resilience of the U.S. economy and continued inflation. Much attention is focused on the upcoming FOMC monetary policy meeting, where the US Fed is expected to maintain its current stance for several consecutive meetings. However, any clues about the Fed's future trajectory of interest rate hikes could have a significant impact on USD dynamics. 
In Europe, EUR/USD fluctuations could be influenced by a number of economic publications. These include the Eurozone consumer price index, German retail sales data and Eurozone GDP. Any deviation from the expected inflation and Eurozone GDP data could change expectations regarding the future direction of ECB monetary policy. 
In the US, labor costs and the Central Bank Consumer Confidence Index are on investors' radar. An increase in labor costs may lead to an increase in wages and purchasing power of the population, thus increasing inflationary pressure. At the same time, a decline in the consumer confidence index could reflect a contraction in consumer spending. 
Technical analysis and scenarios:

The upper band is at 1.06230, the middle band is at 1.05760 and the lower band is at 1.05280. The price is in the upper range of the Bollinger Bands, indicating the presence of bullish momentum. A widening of the bands suggests increased volatility or a potential breakout. Stochastic Oscillator: The value is at 64.2813 and the signal is at 74.5511.This indicates that the pair is neither overbought nor oversold. The MACD value is slightly above its signal line, indicating a weak bullish momentum. Since the price is in the upper range of the Bollinger Bands and the MACD indicates a weak bullish momentum, there is a potential for a continuation of the upside.
Main scenario (BUY)
Recommended entry level: 1.06600.
Take Profit: 1.06970.
Stop Loss: 1.06450.
Alternative scenario (SELL)
Recommended entry level: 1.05660.
Take Profit: 1.05150.
Stop loss: 1.05850.