The EUR/USD pair is experiencing a sustained upward movement for the second consecutive day, reaching the 1.1830 region during Thursday’s Asian trading session. This bullish performance can be attributed to the ongoing weakness of the US Dollar (USD), which has come under pressure due to concerns regarding the economic implications of US President Donald Trump’s unpredictable trade policies.
From a technical analysis standpoint, the Relative Strength Index (RSI) is positioned at 56, indicating a positive momentum that has not yet ventured into overbought territory. This development aligns with a recovery from earlier readings that plummeted below 30. Additionally, the Moving Average Convergence Divergence (MACD) line is hovering just above its signal line, confirming a slight positive shift, reinforced by a modest positive histogram. This suggests that buyers are gradually gaining control of the market, although the current trend lacks impulsive strength.
However, the intraday rally has encountered resistance near the 100-period Simple Moving Average (SMA) on the 4-hour chart. For intraday traders, this point is pivotal; a decisive breakout beyond this resistance could pave the way towards the 1.1860 and subsequently the 1.1900 levels as potential targets. Conversely, immediate support is identified at 1.1790, which safeguards the recent higher low structure. If this level fails to hold, the next significant support stands at 1.1760, marking the initiation of the latest recovery movement.
A sustained position above 1.1790 is crucial for maintaining a bullish outlook, while a drop below 1.1760 would likely neutralize the prevailing rebound and lead to deeper consolidation within the market. Despite these caveats, the near-term bias remains mildly bullish. Traders are advised to await consistent strength above the 100-period SMA on the 4-hour chart before acting on any further appreciation in the currency pair.
In the context of today’s foreign exchange landscape, the table illustrates the percentage changes of the US Dollar against other major currencies. Notably, the USD shows a marginal decline of 0.09% against the Euro and a 0.25% increase against the Japanese Yen, indicating varied performance against different currencies. The heat map further highlights these changes, showcasing how the USD compares with the British Pound, Japanese Yen, Canadian Dollar, Australian Dollar, New Zealand Dollar, and Swiss Franc.
Overall, while the EUR/USD pair enjoys a bullish sentiment, market participants are encouraged to monitor key technical signals closely as they navigate potential fluctuations in this dynamic forex environment.
