Peter Smith
As the global currency markets respond to shifting economic signals and political developments, the EUR/USD pair is drawing increased attention from traders. Recent moves in the pair highlight the importance of key technical levels, central bank actions, and geopolitical news in shaping price direction.
EUR/USD Price Approaches 1.18 After Strong Technical Rebound
The EUR/USD pair is once again approaching the 1.1800 level after rebounding from key support at 1.1575. The move comes as optimism grows over a potential EU-US trade agreement and the European Central Bank’s decision to pause interest rate hikes.
On the chart, the EUR/USD price is trading above key moving averages, including the 10-day EMA (approx. 1.175), 20-day EMA (1.1546), and 55-day EMA (1.1800), suggesting bullish momentum is intact. The price is currently testing the upper boundary of the trend channel near 1.17667, with resistance levels at 1.18296 and 1.19000 ahead.
Political Developments Could Add Volatility
While the macro backdrop is broadly supportive of the euro, political uncertainty in the United States could pose short-term risks. Reports of a surprise visit to the Federal Reserve by former President Trump have stirred speculation about potential shifts in future U.S. policy.
The EUR/USD price may face a decision point: a breakout above 1.1800 could trigger further upside toward 1.1900, while failure to hold support near 1.1700 or 1.1575 could open the door to a bearish retracement.
Peter Smith
