The EUR/USD currency pair peaked at a fresh 2025 high of 1.0954 on Tuesday, maintaining its dominant bullish stance in the market. Traders and investors have keenly observed the pair's movements as it retains a strong position, barely holding above its 20 Simple Moving Average (SMA), which has turned flat, offering dynamic support at approximately 1.0885. The 100 and 200 SMAs, meanwhile, continue to maintain sharp upward trajectories well below the shorter SMA, indicating sustained upward momentum.
Despite reaching a multi-month high earlier in the day, the EUR/USD pair has retreated slightly and is currently testing the 1.0900 level. This retreat reflects a risk-averse market atmosphere that has helped the US Dollar (USD) maintain its ground, posing challenges for the pair to preserve its bullish momentum. Analysts note that the EUR/USD pair is on the brink of a corrective slide, as evidenced by its performance on the 4-hour chart.
The pair's development above all its moving averages demonstrates its resilience. A firmly bearish 20 SMA continues to extend its advance above a flat 100 SMA and is poised to conquer territory above a flat 200 SMA. This configuration suggests that despite current challenges, the pair could achieve further gains if it successfully navigates through existing market conditions.
The EUR/USD's ability to hold above its moving averages signals strength, yet the looming potential for a corrective slide cannot be ignored. The risk-averse sentiment in the market has made it difficult for the pair to sustain its upward trajectory, as investors remain cautious amidst economic uncertainties. The movement of the EUR/USD pair on the 4-hour chart indicates a precarious balance between maintaining its bullish momentum and succumbing to a corrective slide.
The currency pair's current position, barely holding above 1.0885, underscores the volatility of the foreign exchange market. Traders are closely watching whether it can maintain this level or fall further, potentially reversing recent gains. As the EUR/USD pair extends its advance above a flat 100 SMA, market participants are evaluating the likelihood of it conquering ground above a flat 200 SMA.