Euro's Upside Potential Capped by Strong Resistance at $1.1600

The euro's recent gains against the US dollar may be short-lived due to strong resistance around the 1.1600 level, according to technical analysts.

This key threshold has been tested multiple times but not decisively broken, indicating active selling interest near this price point.

The eurozone economy is facing growth headwinds, with manufacturing activity contracting and inflation cooling faster than expected, which keeps the interest rate differential in favor of the dollar, limiting euro gains.