The EUR/USD pair has broken higher, reaching its highest level since November 2021. The U.S. dollar is down 1.35% against the euro today. This move was influenced by a decline in U.S. equities and falling bond prices.
The upward movement has pushed EURUSD above a key swing area between 1.1482 and 1.15158. This former resistance zone has now turned into a crucial support level. If the price can maintain above this zone, further upside momentum is likely for the currency pair.
On the daily chart, the next major target for buyers lies between 1.1665 and 1.16926. This area could temporarily slow down bullish momentum, similar to the breakout zone today. For now, the key technical support to watch remains the 1.1482–1.15158 range.
As long as the pair stays above this level, the path of least resistance remains to the upside for EURUSD. Traders and investors are closely watching these levels for future trading decisions. The technical development is significant for market participants.
Eur/USD breakout sustains key level
The euro’s strength against the dollar is a result of broader market movements. U.S. stocks have retreated from recent highs while Treasury yields have also pulled back.
These factors have contributed to the dollar’s weakness. Economic data and central bank policies continue to shape currency market dynamics. Traders are assessing the outlook for interest rates and economic growth in both the U.S. and Europe.
The European Central Bank has signaled a more hawkish stance recently. This has supported the euro. Meanwhile, the Federal Reserve is expected to maintain its current policy path in the near term.
Geopolitical developments, such as U.S.-China trade relations and Brexit negotiations, also remain on investors’ radars. These factors could introduce volatility into currency markets. Overall, the EURUSD breakout reflects a shift in market sentiment favoring the euro over the dollar.
Traders will be watching key technical levels and monitoring fundamental drivers to gauge the sustainability of this move.
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