EUR/USD has eased off its fresh 2025 highs and is now testing an important technical area.
Will the bulls make a move at the level?
Let’s take a closer look at EUR/USD’s daily chart:
EUR/USD Daily Forex Chart by TradingView
Easing global trade tensions, upbeat corporate earnings, and some positive surprises in mid-tier Euro Area data have helped lift EUR/USD to fresh 2025 highs near 1.1570.
But rising expectations for Fed rate cuts are pushing U.S. assets higher, which could give the dollar some short-term support.
Could this week’s events pull EUR/USD lower toward a key technical zone?
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the euro and U.S. dollar, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
We’re eyeing the 1.1100 to 1.1250 area. This range lines up with a major resistance zone from mid-2023 through 2024 and also overlaps with the Pivot Point and Fibonacci levels on the daily chart.
A drop toward 1.1200 to 1.1250 would bring EUR/USD closer to the 38.2% Fib retracement of its 2025 rally and a rising trend line that’s been in play all year.
If we see green candlesticks and consistent price action above 1.1250, it could confirm that the uptrend is still intact.
But if the pair continues to see red candlesticks and sustains price action below the trend line, we might see EUR/USD revisit old support zones like 1.1000 or even 1.0900.
As always, watch out for other top-tier catalysts that could impact overall market sentiment, and make sure you practice proper position sizing when taking any trades!