EUR/USD Forecast: Euro looks to test 1.1000

• EUR/USD regained its traction after closing in negative territory on Friday.
• The pair’s near-term technical outlook suggests that the bullish bias stays intact.
• Euro could target 1.1000 once it clears 1.0950.

EUR/USD closed in negative territory on Friday but still gained more than 1% in the previous week. Following a quiet Asian session on Monday, the pair regained its traction and rose toward 1.0950.

Hawkish comments from New York Federal Reserve (Fed) President helped the US Dollar hold its ground ahead of the weekend and caused EUR/USD to erase a small portion of its weekly gains. Williams said that they were not currently discussing rate cuts and argued that the market may be overreacting. In the meantime, Chicago Fed President Austan Goolsbee said over the weekend that he did not rule out the possibility of a rate cut at the policy meeting in March and made it difficult for the USD to preserve its strength to start the new week.

On the other hand, Reuters reported that the European Central Bank (ECB) policymakers were unlikely to consider a policy pivot before March. Citing seven sources familiar with the matter, the news outlet said that officials thought that it would be difficult to cut key rates before June.