EUR/USD eyes three-and-a-half-year high as ceasefire fuels bullish sentiment
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EUR/USD holds in ascending channel.
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Strong resistance at 1.1700.
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MACD and RSI extend bullish bias.
EURUSD has found robust support near the 1.1450 level and is trending higher following US President Donald Trump’s announcement of a ceasefire agreement between Iran and Israel. This geopolitical development has bolstered risk sentiment, contributing to the euro’s strength against the US dollar.
The pair is now approaching the three-and-a-half-year high of 1.1625, with the next key resistance at the psychological level of 1.1700, last seen in October 2021. The broader trend remains within a short-term ascending channel, and a decisive breakout above this formation could pave the way for a test of the 1.1900 level, a peak reached in September 2021.
On the downside, any corrective pullback may initially find support at 1.1450, followed by the 1.1370 region, which aligns with the 50-day simple moving average (SMA). A deeper decline could shift short-term momentum in favor of the bears, exposing the 1.1275 and 1.1210 support zones.
From a technical perspective, the MACD continues to gain positive traction above both its trigger and zero lines, while the RSI is approaching the overbought threshold of 70, reinforcing the bullish outlook.
In a nutshell, EURUSD is maintaining a strong upward trajectory across both short- and long-term timeframes, with the potential to challenge new multi-year highs.
Author
Melina joined XM in December 2017 as an Investment Analyst in the Research department. She can clearly communicate market action, particularly technical and chart pattern setups.
