As morning progressed into the early afternoon, the EUR/USD currency pair remained on a steady path within a known trading range. Market participants closely watched important resistance levels. Sellers quickly appeared at approximately the 1.1450 level. This change already suggests a significant headwind as the exchange rate closes in on the key level of 1.1500. Analysts view the pair’s current location as an ideal launching pad for bulls to make their move. For that to happen they need to pass this resistance stronghold.
During last trading day, EUR/USD stayed firmly above each of its moving averages which points to bullish near-term perspective. The 20 Simple Moving Average (SMA) just above 1.1345, acting as a critical support zone. With this positioning, the pair shows huge momentum, as it trades comfortably above a currently flat 20 SMA. It should be noted that longer moving averages are showing bullish traction underneath this line, adding to the underlying positive sentiment currently present in the market.
Technical indicators have made a sudden, and obvious, surge northward with all major technical indicators placing above their midlines and on the rise. The price action to the upside indicates considerable bullish demand in the market. The momentum indicator remains below its recent peak, suggesting that growth could cool in the near term.
Now that EUR/USD has gotten back up to its recent high around the 1.1500 level, it is undergoing a critical test. Analysts claim that for the pair to really go bullish, it needs to get above this level convincingly. A continued move above 1.1500 could open up more bullish moves and possibly a new leg higher for the currency pair. As the daily chart below reveals, technical indicators are moving higher within bullish territory. This indicates a definite index able to move up further in the months ahead.
Recent geopolitical developments—particularly Russia’s invasion of Ukraine—have drastically shifted market sentiments and priorities. This started with aggressive, protectionist statements from US President Donald Trump regarding US-China trade relations. President Trump’s tweet that a deal with China is “done” has caused hope to ripple through the markets. This boost in confidence enhances the bullish case for EUR/USD even further.