During Tuesday’s European session, the EUR/USD pair maintains stability near the critical 1.0500 level, supported by geopolitical developments and anticipation of the European Central Bank’s (ECB) monetary policy announcement.
A major factor influencing market sentiment is the renewed push for a peace plan in Ukraine. European officials, including Ukrainian President Volodymyr Zelenskyy, have agreed to work toward a resolution aimed at ending the two-year-long conflict. Traders are optimistic that a potential truce could help restore Eurozone supply chains, boosting confidence in the euro.
ECB Rate Decision in Focus
The ECB’s upcoming policy meeting on Thursday remains the key driver for the euro this week. According to a Reuters poll conducted from February 19–27, the central bank is expected to cut its Deposit Facility Rate by 25 basis points (bps) to 2.5%. If confirmed, this would mark the first rate cut in the ECB’s easing cycle.
A dovish stance has been reinforced by concerns over U.S. trade policies. Market participants fear that President Donald Trump’s proposed tariffs could weigh on Eurozone economic growth, pushing the ECB toward a more accommodative approach.
Technical Outlook: Key Levels to Watch
EUR/USD continues to hold above the 72-day Exponential Moving Average (EMA) at 1.0480, signaling a short-term bullish trend. The key resistance level for euro bulls stands at 1.0533, and a breakout above this level could open the door for further gains.
On the downside, the pair finds initial support at 1.0420. A decisive break below this zone may trigger further declines toward the next key support level at 1.0330.
A major factor influencing market sentiment is the renewed push for a peace plan in Ukraine. European officials, including Ukrainian President Volodymyr Zelenskyy, have agreed to work toward a resolution aimed at ending the two-year-long conflict. Traders are optimistic that a potential truce could help restore Eurozone supply chains, boosting confidence in the euro.
ECB Rate Decision in Focus
The ECB’s upcoming policy meeting on Thursday remains the key driver for the euro this week. According to a Reuters poll conducted from February 19–27, the central bank is expected to cut its Deposit Facility Rate by 25 basis points (bps) to 2.5%. If confirmed, this would mark the first rate cut in the ECB’s easing cycle.
A dovish stance has been reinforced by concerns over U.S. trade policies. Market participants fear that President Donald Trump’s proposed tariffs could weigh on Eurozone economic growth, pushing the ECB toward a more accommodative approach.
Technical Outlook: Key Levels to Watch
EUR/USD continues to hold above the 72-day Exponential Moving Average (EMA) at 1.0480, signaling a short-term bullish trend. The key resistance level for euro bulls stands at 1.0533, and a breakout above this level could open the door for further gains.
On the downside, the pair finds initial support at 1.0420. A decisive break below this zone may trigger further declines toward the next key support level at 1.0330.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.