EUR/USD targets key resistance amid bullish momentum
EUR/USD targets key resistance amid bullish momentum
Since April, the euro has steadily outperformed the US dollar, a trend clearly visible on the daily chart, where EUR/USD has shown a series of higher highs and higher lows. This consistent upward movement reflects a strong bullish extension, with each pullback being followed by a vigorous continuation, resulting in the euro rising against the dollar.
EUR/USD gained significant momentum last week, pushing the pair to an eight-month high, surpassing the January opening level. This rise was driven by positive sentiment, which allowed EUR/USD to break the critical psychological barrier of 1.1000, according to the Traders Union.
The euro's rise was driven by stronger-than-expected economic data from the eurozone, which contrasted sharply with weaker figures from the US. Indicators such as solid GDP growth in the eurozone supported the euro, while disappointing U.S. inflation data and softening labor market indicators pressured the dollar.
With the market increasingly expecting a Federal Reserve rate cut in September, EUR/USD remains above the key 1.1000 level and attention now shifts to whether this bullish momentum can be sustained.
EUR/USD price forecast for today from Traders Union analyst Sholanke Dele.
The pair is currently testing the critical resistance zone at 1.10400 for the second time in two weeks, a level that was instrumental in triggering the sell-off earlier in the year.
In the absence of important economic data from the US or Eurozone today, the market could challenge and potentially break through the 1.10400 resistance caused by underlying dollar weakness. If a breakout occurs, EUR/USD bulls could target the next significant resistance level at 1.1100.
However, if the bears manage to regain temporary control, any pullback is expected to be short-lived, with near-term support at 1.1000 or 1.0950 providing solid protection. This indicates that even in the event of a minor correction, the overall bullish outlook for EUR/USD will remain intact.
