Over the past 24 to 48 hours, the EUR/USD currency pair has shown a moderate upward trend, mainly driven by the easing of global US Dollar liquidity. With yesterday’s closing price around 1.17954, the euro appreciated by approximately 0.3% against the dollar, reflecting market reactions to the ongoing US dollar weakness.

Recent market news highlights a mixed bag of US economic data leading to diminished dollar appeal, with investors gradually shifting towards the euro and other currencies. The US dollar’s share in global reserves also dropped from 57.08% to 56.92%, reinforcing the diminished demand for the greenback. Analysts favor a stronger economic outlook for the eurozone compared to the US, especially as the US economy is expected to slow down entering 2026, boosting euro attractiveness amid stronger regional economic performance.

For the average investor, this dynamic means that the recent dollar weakness may make euro assets more appealing, particularly as global capital allocation trends move towards diversification. The gain in the EUR/USD pair essentially reflects reduced dollar safe-haven demand and growing confidence in the eurozone economy.

Daily Chart

The daily chart shows a clear uptrend in EURUSD, with the price steadily climbing from recent lows and breaking above both the 50-day and 200-day moving averages, confirming a medium to long-term bullish trend. The Bollinger Bands are widening, indicating increased volatility. The MACD indicator shows a bullish crossover, signaling sustained upward momentum. However, the stochastic oscillator on the daily chart points to short-term overbought conditions, suggesting a possible pullback may occur.

1H Chart

On the hourly chart covering the last 5 days, EURUSD has been in a choppy upward trend, repeatedly finding support around the 1.1780-1.1800 area. Short-term moving averages are aligned bullishly, and MACD histogram bars have been expanding positively, indicating strong momentum. A bullish flag pattern has developed recently, hinting at a potential breakout to the upside. The latest candlestick formed a hammer pattern, suggesting immediate buying interest and a possible rise in the next 24 hours.

Technical Trend:  The current trend is classified as decisively bullish, with some risk of minor short-term consolidation or pullback.

Technically, the EURUSD’s daily chart bullish crossover and expanding Bollinger Bands suggest strong medium-term momentum, while the hourly chart’s bullish flag and hammer candlestick signal immediate buying interest. The daily stochastic reading indicates possible short-term overbought risk, advising traders to exercise caution near the 1.1800 resistance level and wait for confirmed breakout signals before increasing long positions.

Today’s economic calendar for the Eurozone includes key data releases such as Sweden’s Producer Price Index, Germany’s Import Prices, and Spain’s final GDP for Q3, showing mild declines or stability. The US will release its 3Q advanced GDP at 14:30 GMT+1, forecasted at 3.2% but currently reported at 4.3%, which may strengthen the US dollar temporarily, putting pressure on EURUSD. Given the time zone difference (GMT+1 vs. Hong Kong time), traders in HK should monitor market moves closely in the afternoon and evening sessions.

Resistance & Support

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