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During the Asian session, the EUR/USD pair is fluctuating above the round-level support of 1.0700. The major currency pair is anticipated to remain active as the proposal to raise the $31.4 trillion US borrowing limit for two years was approved after Democrats compromised on budget expenditure initiatives.

The US Dollar Index (DXY) is unable to extend its recovery above 104.30, despite the fact that the Federal Reserve (Fed) is anticipated to continue its policy-tightening regime due to the persistence of US household expenditure.

In order to combat persistent inflation, the European Central Bank (ECB) is anticipated to raise interest rates further despite the German economy's two consecutive quarters of declining Gross Domestic Product (GDP) numbers, which constitutes a record. Christine Lagarde, president of the ECB, has already stated that multiple interest rate increases are anticipated to reduce inflation.

On a four-hour scale, EUR/USD has fallen below the 61.8% Fibonacci retracement (from March 15's low of 1.0516 to April 26's high of 1.1095) at 1.0738. The 20-period Exponential Moving Average (EMA) at 1.0740 represents a formidable obstacle for Euro investors. The asset is being auctioned in a Falling Channel in which market participants view each pullback as a selling opportunity.

The Relative Strength Index (14) oscillates between 20.00 and 40.00, indicating the continuation of adverse momentum.

If the shared currency pair falls below the round-level support of 1.0700, the decline will resume. This will drive the asset toward the low of March 13 at 1.0650, followed by the low of March 3 at 1.0588.

In contrast, a recovery rise above the high of May 24 around 1.0800 would put the ball in Euro's court. A robust recovery above 1.0800 would propel the asset to the 18 May high of 1.0848 and the 16 May high of 1.0906.

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