EUR/USD Flashes Reversal Warning as Bessent Plan Looms

US Treasury Secretary Scott Bessent is expected to announce his plans to consolidate the US fiscal trajectory in the coming days, which could have a significant impact on the EUR/USD exchange rate. However, instead of triggering a dollar selloff, traders are giving him the benefit of the doubt for now.

Meanwhile, the EUR/USD has been showing signs of fatigue, with back-to-back gravestone dojis printing on the daily chart, warning that the bullish breakout from the longer-term bearish trend may have run its course. The pair's immediate level to watch is 1.1670, which has acted as both support and resistance at various points this year.

The technical picture for EUR/USD is sending conflicting signals, with price action and momentum showing a reversal warning, while the oscillators remain bullish. If the level of 1.1670 continues to hold, bulls are likely to target just above 1.1700, where the pair stalled twice last week.