Euro builds momentum as technical support holds firm
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The EUR/USD pair began the week trading in positive territory above the 1.0300 mark, reflecting continued bullish momentum in the European morning. The near-term technical outlook suggests limited seller interest, while the broader sentiment is supported by external factors.
Market context
The Euro strengthened against the US Dollar at the start of the week, benefiting from selling pressure on the greenback. The Martin Luther King Jr. Day holiday in the US kept financial markets subdued, but attention is focused on potential policy signals from President Trump’s inauguration. Over the weekend, Trump emphasized a collaborative approach with China’s President Xi Jinping, fueling speculation about a softer tone on trade policies. This development, if sustained, could challenge the USD’s resilience.
Technical analysis
EUR/USD remains above the Fibonacci 23.6% retracement level of the December-to-mid-January downtrend, signaling strong bullish momentum. The Relative Strength Index (RSI) on the 4-hour chart is approaching 60, further highlighting the upward trajectory.
Resistance levels
Immediate resistance is seen at 1.0325, marked by the 100-period Simple Moving Average (SMA).
A break above 1.0325 could pave the way for 1.0390-1.0400, where the Fibonacci 50% retracement and 200-period SMA converge.
Support levels
Strong support aligns at 1.0290-1.0300, underpinned by the 50-period and 20-period SMAs, as well as the Fibonacci 23.6% retracement.
Further support lies at 1.0250 and 1.0200, marking key static levels and the endpoint of the recent downtrend.
Euro price performance
The Euro was the strongest currency against the US Dollar, gaining 0.34% at the start of the week. Against other major currencies:
Highlights:
EUR/USD: +0.34%
EUR/GBP: -0.04%
UR/JPY: +0.21%
The heat map of major currency performance underscores the Euro’s relative strength, reflecting robust market sentiment.
Market outlook
With limited activity in US financial markets, the EUR/USD pair is expected to maintain its bullish tilt in the short term. Investors will closely monitor Trump’s inaugural comments and potential trade policy implications for further direction. A sustained break above 1.0325 could confirm additional upside momentum, while the 1.0290 support area remains critical for the pair’s stability. Geopolitical and macroeconomic developments will likely shape the next significant moves in this key currency pair.
Market context
The Euro strengthened against the US Dollar at the start of the week, benefiting from selling pressure on the greenback. The Martin Luther King Jr. Day holiday in the US kept financial markets subdued, but attention is focused on potential policy signals from President Trump’s inauguration. Over the weekend, Trump emphasized a collaborative approach with China’s President Xi Jinping, fueling speculation about a softer tone on trade policies. This development, if sustained, could challenge the USD’s resilience.
Technical analysis
EUR/USD remains above the Fibonacci 23.6% retracement level of the December-to-mid-January downtrend, signaling strong bullish momentum. The Relative Strength Index (RSI) on the 4-hour chart is approaching 60, further highlighting the upward trajectory.
Resistance levels
Immediate resistance is seen at 1.0325, marked by the 100-period Simple Moving Average (SMA).
A break above 1.0325 could pave the way for 1.0390-1.0400, where the Fibonacci 50% retracement and 200-period SMA converge.
Support levels
Strong support aligns at 1.0290-1.0300, underpinned by the 50-period and 20-period SMAs, as well as the Fibonacci 23.6% retracement.
Further support lies at 1.0250 and 1.0200, marking key static levels and the endpoint of the recent downtrend.
Euro price performance
The Euro was the strongest currency against the US Dollar, gaining 0.34% at the start of the week. Against other major currencies:
Highlights:
EUR/USD: +0.34%
EUR/GBP: -0.04%
UR/JPY: +0.21%
The heat map of major currency performance underscores the Euro’s relative strength, reflecting robust market sentiment.
Market outlook
With limited activity in US financial markets, the EUR/USD pair is expected to maintain its bullish tilt in the short term. Investors will closely monitor Trump’s inaugural comments and potential trade policy implications for further direction. A sustained break above 1.0325 could confirm additional upside momentum, while the 1.0290 support area remains critical for the pair’s stability. Geopolitical and macroeconomic developments will likely shape the next significant moves in this key currency pair.