EUR/USD Rises as USD Weakens – What’s Next?
The EUR/USD pair has regained traction, climbing above 1.0450 in Friday’s European trading session. The US Dollar (USD) is losing ground, driven by improving risk sentiment, as investors assess the latest developments in Trump’s tariff policies and the Russia-Ukraine peace negotiations. With a busy economic calendar ahead, traders are preparing for key releases from the Eurozone and the US.
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EUR/USD Technical Analysis – Key Levels to Watch
Resistance Levels:
- 1.0500 – 1.0510: Round psychological level, Fibonacci 78.6% retracement of the latest downtrend.
- 1.0550: Strong static resistance level.
- 1.0600: Key zone marking the beginning of the previous downtrend.
Support Levels:
- 1.0440: 100-period SMA and Fibonacci 61.8% retracement.
- 1.0400: Fibonacci 50% retracement level.
- 1.0350 – 1.0360: Fibonacci 38.2% retracement, reinforced by the 200-period SMA.
Relative Strength Index (RSI) Signal
- The RSI on the 4-hour chart remains above 70, indicating overbought conditions.
- A short-term pullback could be expected before the uptrend resumes.
📈 Now, let’s visualize the EUR/USD daily trend with a chart. 📊
What’s Next for EUR/USD?
📌 Short-Term Outlook:
- If EUR/USD holds above 1.0450, further gains towards 1.0510 and 1.0550 could be expected.
- A pullback toward 1.0440 or 1.0400 is possible before the uptrend resumes.
📌 Market Drivers to Watch:
- Eurozone Inflation & GDP Data: Key economic reports may impact the Euro’s strength.
- US Dollar Trends: Fed policy expectations and risk sentiment will influence USD movement.
- Geopolitical Updates: Market reactions to Trump’s tariffs and Russia-Ukraine peace talks may drive volatility.
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