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08/04/25
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EUR/USD Gains Traction as US Dollar Weakens: Key Levels to Watch
The EUR/USD currency pair is experiencing renewed interest from buyers, effectively breaking a two-day losing streak as the US dollar weakens. This shift in momentum is encouraging for bullish traders, with technical indicators suggesting the potential for further gains in the near term. However, a significant break below the 200-hour Exponential Moving Average (EMA) would be necessary to challenge this positive outlook.
During the Asian trading session on Tuesday, the EUR/USD pair found upward momentum, regaining traction and recovering from a recent decline that followed its peak last week, marking the highest levels seen since September. Spot prices surged to around 1.0975, reaching a new daily high as market sentiment shifted in favor of the euro.
Analyzing the technical aspects, the EUR/USD demonstrated resilience near the 200-hour EMA during Monday’s trading. This has positioned the pair favorably for bullish activity, as oscillators on both the daily and hourly charts remain in positive territory, indicating that the prevailing trend seeks upward movement.
For traders considering entry points, a decisive breakout beyond the short-term descending trend-line resistance near the significant 1.1000 level would be critical. Such a breakthrough could open pathways for the pair to challenge previous highs, including the 1.1050 mark and potentially the year-to-date peak of around 1.1100.
On the other hand, the 1.0940 level is expected to provide some support, with additional backing from the 100-hour EMA located near the 1.0900 level. Should this area be breached, it may lead to further declines, targeting intermediate support at 1.0845 and major psychological levels at 1.0800 and 1.0735. A substantial drop below these key levels could signal a reversal in the current bullish trend, suggesting a deeper correction may be on the horizon for the EUR/USD pair.
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