The pair has been rising for the last five sessions, gaining approximately 1.4%, as expansionary policies in European countries have restored confidence in the euro. In contrast, the U.S. dollar continues to struggle with maintaining consistent demand due to the ongoing tariff battle led by the White House.
Accelerated Movement:
Since March 3rd, EUR/USD has experienced growth of over 5%, driven by strong short-term bullish momentum. Currently, the price is slowly approaching a key resistance zone, but recent price oscillations suggest that bullish momentum is fading, which could lead to short-term bearish corrections.
RSI Indicator:
The RSI line has started oscillating above the 70 level, which is the official overbought zone of the indicator. This suggests that the balance between buying and selling pressure has been lost, with bullish momentum fully dominating the market. The increasing speed of demand for EUR/USD may indicate a potential emergence of bearish corrections in the short term.
MACD Indicator:
The MACD histogram remains at its highest levels of the year, suggesting that buying pressure may be entering a phase of constant exhaustion. In the long run, this could also open the possibility of selling corrections in the upcoming sessions.
Key Levels:
By Julian Pineda, CFA – Market Analyst
Accelerated Movement:
Since March 3rd, EUR/USD has experienced growth of over 5%, driven by strong short-term bullish momentum. Currently, the price is slowly approaching a key resistance zone, but recent price oscillations suggest that bullish momentum is fading, which could lead to short-term bearish corrections.
RSI Indicator:
The RSI line has started oscillating above the 70 level, which is the official overbought zone of the indicator. This suggests that the balance between buying and selling pressure has been lost, with bullish momentum fully dominating the market. The increasing speed of demand for EUR/USD may indicate a potential emergence of bearish corrections in the short term.
MACD Indicator:
The MACD histogram remains at its highest levels of the year, suggesting that buying pressure may be entering a phase of constant exhaustion. In the long run, this could also open the possibility of selling corrections in the upcoming sessions.
Key Levels:
- 1.1000 – Tentative Resistance: A potential psychological barrier that the price may face in its prolonged bullish streak. Oscillations above this level could confirm sustained buying pressure and signal the beginning of stronger upward movements in the chart.
- 1.07944 – Near-term Support: A neutral zone where the price has shown stability in the short term. This level may be important for potential selling corrections in the next trading sessions.
- 1.06173 – Distant Support: A key level corresponding to the highs reached in December 2024. Bearish oscillations reaching this level could jeopardize the current strong bullish trend.
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.