The EUR/USD has gained more than 4% over the past three trading sessions, with bullish momentum remaining strong, as markets fear that a continued escalation in the trade war may keep heavy selling pressure on the U.S. dollar. With tariff-related uncertainty persisting, the euro continues to attract capital fleeing the dollar in search of a temporary safe haven.
Bullish Trend
Currently, the most relevant formation on the chart is a short-term bullish trend, which began in early March. Price action has continued to show consistent upward momentum, moving steadily toward the next psychological resistance at 1.15000, which has further reinforced buying pressure in the near term.
However, it's important to note that the volatility seen in recent sessions has been significant, which could open the door to short-term corrective pullbacks.
RSI Indicator
The RSI line has started to oscillate above the overbought level at 70. Additionally, a relevant divergence has begun to emerge: while the RSI continues to post flat highs, the price of EUR/USD is printing higher highs.
These signals suggest a possible imbalance between buying and selling strength, indicating that a short-term correction could be on the horizon.
Key Levels to Watch:
By Julian Pineda, CFA – Market Analyst
Bullish Trend
Currently, the most relevant formation on the chart is a short-term bullish trend, which began in early March. Price action has continued to show consistent upward momentum, moving steadily toward the next psychological resistance at 1.15000, which has further reinforced buying pressure in the near term.
However, it's important to note that the volatility seen in recent sessions has been significant, which could open the door to short-term corrective pullbacks.
RSI Indicator
The RSI line has started to oscillate above the overbought level at 70. Additionally, a relevant divergence has begun to emerge: while the RSI continues to post flat highs, the price of EUR/USD is printing higher highs.
These signals suggest a possible imbalance between buying and selling strength, indicating that a short-term correction could be on the horizon.
Key Levels to Watch:
- 1.15000: A tentative resistance level aligned with a key psychological threshold. Sustained bullish moves above this zone could strengthen the current upward bias and lead to a more pronounced uptrend.
- 1.11549: A nearby support level, which could act as the first zone of interest if a short-term correction unfolds.
- 1.09513: A key support area, representing the most important neutral zone tested in recent weeks. A break below this level could put the current bullish structure at risk.
By Julian Pineda, CFA – Market Analyst
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.
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.