The EUR/USD currency pair is maintaining its bullish momentum, reaching fresh highs for 2025, as it benefits from widespread selling pressure on the US Dollar. This upward trend is driven by market assessments of the potential negative impacts of US trade policy on growth prospects. On Tuesday, the pair picked up fresh bids, extending its gains well above the 1.0500 mark, trading at its highest point since last December.
The EUR/USD pair's impressive performance is reflected in its movement past key moving averages. The bullish 20 and 100 Simple Moving Averages (SMAs) are converging at around 1.0440, signaling ongoing upward strength. This convergence is in line with the dominant bullish trend, with the 20 SMA advancing below the longer-term average. Interestingly, even the bearish 100 SMA, currently in the 1.0510 region, has been surpassed by the pair.
Technical indicators further support the bullish outlook for EUR/USD. The daily chart reveals a sharp rise for a second consecutive day, pressuring a fresh high for 2025 at 1.0556. These indicators continue to head firmly north, suggesting additional gains are likely ahead. The EUR/USD remains comfortably above its moving averages, displaying robust bullish momentum.
Market focus remains on tariff discussions and Fedspeak, which could significantly influence future movements in the EUR/USD pair. As these factors play out, the currency pair preserves its strong bullish momentum, trading at its highest level since early December above 1.2700 on Tuesday.
The broad-based selling pressure on the US Dollar is a key factor in EUR/USD's current performance. Market participants are closely monitoring US trade policies, which are expected to have a significant impact on growth prospects. These concerns have led to a weakening of the US Dollar, providing an opportunity for the euro to strengthen against it.
The technical analysis underscores the strength of EUR/USD's current rally. With the 20 SMA advancing below the longer one and both SMAs converging at approximately 1.0440, the pair is well-positioned for continued upward momentum. The surpassing of the bearish 100 SMA further reinforces this positive outlook.