EUR/USD Price Outlook: Aims to extend gains above the 1.1735 convergence level
EUR/USD Gains Momentum in Asian Trading
During Tuesday's Asian session, the EUR/USD currency pair found renewed buying interest near the 1.1710 mark, extending its robust rebound from the previous day's dip to nearly a four-week low around 1.1660. The pair is currently hovering near 1.1735, reflecting a 0.10% increase for the day, and appears well-positioned for additional advances thanks to favorable market fundamentals.
The US Dollar (USD) continues its downward trajectory for a second consecutive session, pulling back further from Monday's peak—the highest since December 10—amid growing expectations that the US Federal Reserve will maintain a dovish stance. At the same time, speculation that the European Central Bank (ECB) has concluded its rate-cutting cycle is lending support to the euro, providing a boost to EUR/USD.
A move above the 1.1735 level—which aligns with both the 100-hour Simple Moving Average (SMA) and the 50% Fibonacci retracement of the decline from 1.1808 to 1.1660—reinforces the optimistic outlook for the pair. Additionally, the Moving Average Convergence Divergence (MACD) indicator has shifted into positive territory and is trending higher, signaling strengthening bullish momentum.
Supporting this view, the Relative Strength Index (RSI) stands at 59, suggesting there is room for further appreciation. The next significant resistance is seen near the 61.8% Fibonacci retracement level, located in the mid-1.1700s. A decisive break above this area would reinforce the corrective rally, while a failure to surpass it could see EUR/USD settling back into its recent trading range.
This technical analysis incorporates insights generated with the assistance of AI tools.
EUR/USD 1-Hour Chart Overview
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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