The EUR/USD pair began the new trading week on a strong note, attracting dip-buying interest and partially reversing Friday’s losses. Spot prices rose above 1.1420 during the European session, marking a gain of over 0.20% for the day and signaling renewed bullish momentum as the US Dollar (USD) softened broadly.
Technically, the pair has once again demonstrated resilience, bouncing off the 100-hour Simple Moving Average (SMA) on Friday. This rebound, coupled with supportive signals from daily chart oscillators, suggests the potential for a continued upward push.
If the positive momentum holds, the EUR/USD pair is likely to retest the 1.1450–1.1455 resistance zone. A breakout above this range would open the door toward the key psychological level of 1.1500, last seen during last week’s rally to the highest level since April 22.
A decisive move above 1.1500 would reinforce the bullish outlook and could act as a fresh catalyst for traders aiming higher. In such a scenario, the pair may target the next resistance at 1.1550, followed by an attempt to reclaim the year-to-date high of 1.1575 set in April.
On the downside, Friday’s low near the 1.1370 area is expected to act as immediate support. A break below this level could prompt further declines toward 1.1340. If selling pressure intensifies, the pair may slide below 1.1300, with the next critical support lying at 1.1210—the level tested on May 29.
Failure to hold above these support levels would undermine the recent bullish structure and shift market sentiment in favor of the bears.
For now, with technicals favoring buyers and the US Dollar on the back foot, the EUR/USD pair remains poised to extend its four-week uptrend.
Related topics:
