• EUR/USD attempts a dead cat bounce above 1.0700.
• But EUR bulls lack conviction amid a bearish technical structure.
• The pair needs to recapture 1.0746 convincingly to cement the recovery.

EUR/USD is consolidating the recovery above 1.0700, as the bulls lack the follow-through upside bias, despite the improving market mood and a broad US dollar retreat.

Reports that the European Union (EU) may consider a cap on the price paid to Russian oil importers, in another way to hit the Kremlin revenues, are also weighing on EUR bulls.

Meanwhile, the pullback in the US dollar appears temporary, as China covid concerns and the hawkish Fed bets will keep the buck broadly favored.

The focus now shifts towards the US Durable Goods and Consumer Confidence data amid a data-empty EU docket. Investors also assess Monday’s German IFO survey, which surprised markets to the upside.  

Separately, Goldman Sachs said in its latest report that it expects the ECB to hike interest rates by 25-bps in July.

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