The EUR/USD currency pair has proved to be incredibly strong, pushing up against weekly intraday highs in Thursday’s trading sessions. The currency pair is quite bullish at the moment. Analysts have noted that it’s in a consolidative phase, showing signs of bullishness and resilience.
On Thursday, EUR/USD bullish momentum continued and saw the pair rally to the high of the day at 1.1675 in European trading. This movement highlights the pair’s ability to continue its breakout in the short term. Investors are sanguine over the Euro’s outlook against the U.S. Dollar. Most are anticipating more upside as the pair approaches major resistance levels.
Technical readings on the daily chart show that EUR/USD is bolstered by strong support at 1.1645, 1.1610, and 1.1570. The 20 Simple Moving Average (SMA) further strengthens this support at ~1.1645, creating a cushion for further movement. The 100 and 200 SMAs show a clear upward trend, although they are starting to lose steam at the moment.
The pair lurches through these rungs with grim purpose. It faces strong technical headwinds at 1.1700, an important line in the sand that will decide if the pair further appreciates or not. If it does manage to penetrate this hurdle, experts predict that EUR/USD might hit the expected price target area of 1.1740. Beyond that, an even stronger resistance level at 1.1785 would be the next target.
Traders are bullish on the short term. Specifically, they’re watching like hawks to see how the duo reacts when it gets close to these important levels. Market conditions strongly favor buyers. The biggest question of all is what will happen to prices and appreciation in this new environment?