EUR/USD Eyes Breakout as PCE Data Looms Wednesday

EUR/USD bulls are testing a critical resistance zone as traders position ahead of Wednesday's PCE Price Index release. The pair's recent breakout structure suggests buyers have regained control following the dovish tone struck in the latest FOMC minutes, which softened expectations for aggressive Fed tightening.

Momentum indicators point to a constructive setup, though a break above near-term resistance would need confirmation from softer-than-expected core PCE figures. Conversely, a hot inflation print could quickly reverse the recent gains and send price back toward prior support.

With personal income and spending data also due alongside PCE, volatility around the release window is likely to be elevated, making risk management essential for short-term EUR/USD positioning.