Over the past 24 to 48 hours, EUR/USD has seen a strong performance, rallying above the 1.1740 level and surpassing yesterday’s closing price of 1.17481. The market was notably influenced by the news of former US President Trump dropping tariff threats, which weighed on the US Dollar and propelled the EUR/USD pair to rise by over 0.5%. Despite solid recent US economic data, the dollar’s weakness allowed the euro to gain ground.

Especially late Thursday, EUR/USD climbed further to around 1.1750, hitting a two-day high and signaling continued bullish momentum. Although eased US-EU tensions and a cautious Federal Reserve stance have kept some support under the dollar, the temporary pause in dollar selling combined with Trump’s softer trade stance has opened the door for additional euro gains.

For the average investor, this period resembles a ‘currency race’ where Trump’s easing of tariff threats caused the dollar to lose its acceleration edge, giving the euro a chance to breathe and surge ahead. As the euro keeps ascending, investors should closely watch US policy developments and their direct effects on the dollar, as these will be key in shaping the near-term trajectory of EUR/USD.

Daily Chart

On the daily chart, EURUSD has been in an uptrend since the start of the year, with price consolidating in the 1.165 to 1.175 range recently. The pair successfully remains above the 50-day moving average (~1.1687) and the 200-day moving average (~1.16517), confirming bullish bias. Bollinger Bands show an expansion after a squeeze, indicating increased volatility. The MACD formed a bullish crossover, further supporting upward momentum. Overall, the daily chart suggests a steady recovery with the potential to challenge resistance near 1.18.

1H Chart

Examining the hourly chart over the past 3-5 days, EURUSD has rallied from around 1.1650, with price consolidating and pushing higher in recent sessions. The 50-hour and 20-hour moving averages are aligned bullishly, and the MACD remains positive with signs of divergence expansion, signaling active buying pressure. Bollinger Bands are widening upward, suggesting strengthening volatility to the upside. Notably, recent candlesticks display strong bullish candles, reinforcing support near 1.1700 and momentum toward the 1.1750 level.

Technical Trend:  The current trend is decisively bullish, with a steady upward momentum poised to test medium-term resistance levels.

Technically, EURUSD is forming a short-term bullish flag pattern that began to take shape in the last five days. A successful breakout above the flag’s upper boundary is expected to extend the current uptrend. Yesterday’s close produced a bullish engulfing candlestick, signaling immediate bullish control expected to dominate the next 24 hours. Furthermore, MACD and Bollinger Band indicators align to confirm strengthening momentum, presenting a high-probability long trade setup.

Today’s economic calendar highlights key Eurozone and German manufacturing and services PMI preliminary releases, expected near 49.1 and 52.6 respectively, indicating ongoing expansion. Additionally, the European Central Bank President is scheduled to speak, which markets will closely watch for monetary policy clues. With no major US or Japanese data directly impacting EURUSD today, the ECB comments are likely the main event to influence price movements.

Resistance & Support

The above financial market data, quotes, charts, statistics, exchange rates, news, research, analysis, buy or sell ratings, financial education, and other information are for reference only. Before making any trades based on this information, you should consult independent professional advice to verify pricing data or obtain more detailed market information. 1uptick.com should not be regarded as soliciting any subscriber or visitor to execute any trade. You are solely responsible for all of your own trading decisions.