Rental growth, the analysts say, continues to be positive on balance for the EUR/USD currency pair heading into Q1 2026. Holding above the first target, originally established at 1.36, market players continue to watch technical signals pointing to promising bullish developments. Should prices validate a breakout above 0.2483 and 0.2573 (38.2% Fib expansion), they might explode to the 1.23 Figure. As always, be careful out there, macroeconomic conditions aren’t static and can shift dramatically.
In any case, the EUR/USD more recently has shown great strength and durability. It has since found a promising cleaner higher-low sequence after putting in an impressive base from 2022 to 2023. This rallying path is emblematic of the duo’s continued ability to honor medium-term support areas, signaling steady demand from market participants. Today’s technical analysis shows a possible moment for bullish continuation to breaking resistance. Europe’s economic growth outlook is enough, albeit tepid, giving room for this supportive trend.
Beyond monetary policy, the broader macroeconomic environment through 2025 is showing signs of US exceptionalism. It appears this trend may be starting to slow down. This shift may influence the dynamics of the EUR/USD pair as investors assess the implications for future monetary policy and economic performance. According to those who trade the market, no matter how far EUR/USD drops from here, traders will most likely look at that as a buying opportunity. This view remains correct provided US economic data does not start to show a meaningful re-acceleration.
The first step towards 1.36 marks an important threshold for short-sellers. If the couple breaks above this resistance, analysts expect the prospects of another lag down to 1.32. This scenario underlines the importance of monitoring both technical and fundamental indicators that could impact currency valuations in the coming months.
The technical analysis, for EUR/USD lays out a clear roadmap that points to a push back towards the 1.22–1.23’s. Moreover, increasing stability in Europe may back up further increases in this currency pair. As traders head into the depths of Q1 2026, being aware and conscious of macroeconomic shifts will be key. This combination will strongly affect currency trends in the future.
The ongoing dynamic between US vs European economic performance is likely to continue to be a key driver of trader sentiment and subsequent market swings. With US data remaining a focal point, any shifts in economic indicators could lead to volatility in the EUR/USD pair. Ultimately, experts suggest that all stakeholders—including municipalities, developers, and investors—remain watchful and flexible to the evolving situation.