|

EUR/USD forecast: Cautiously tackles high resistance ahead of the US inflation report

  • The EUR/USD is moving higher alongside falling US yields and reached high resistance. 
  • The pair may hesitate, in wait for stocks and the US inflation report tomorrow.

The EUR/USD is trading around 1.2350, up approximately 50 pips on the day. The 1.2350 level served as a support line in mid-late January, when the pair traded in a higher range, topping 1.25. 

The background for the advance of the pair is some stability in global stock markets. US shares closed higher on Monday and are set to open slightly lower. The relative calm in equities is accompanied by falling US Treasury bond yields. The global benchmark is down to 2.83% after reaching a peak of 2.902 yesterday, the highest in four years. 

ECB President Mario Draghi said that the European economy has been continuously expanding for several years and that the ECB has to work to make it continue. His words do not provide any hints about future monetary policy. 

The US calendar has been quiet yesterday and remains quiet today, apart from a speech by FOMC voting member Loretta Mester. She is known as a hawk and is unlikely to upset the apple cart. Things get busier tomorrow with the highly anticipated US inflation report. See the preview here

EUR/USD technical picture looks positive

The daily EUR/USD chart shows a favorable view of the pair. The RSI continues rising above 50 but remains below overbought territory. The pair has set a higher low at 1.22 on Friday, above the previous trough of 1.2160. The EUR/USD also maintains a safe distance from uptrend support lines. Momentum is slightly weighing on the pair.

Above 1.2350, the next line to watch is 1.2405 which capped the pair earlier in February. The 2018 peak of 1.2537 is a crucial level. 

Looking down, 1.23 has capped the narrow range and is weak support. It is followed by 1.2205, the bottom of that range. The next levels on the downside are 1.2160 seen in January and the former double-top of 1.2090.

More: 

Author

Yohay Elam

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

More from Yohay Elam
Share:

Editor's Picks

EUR/USD gathers traction, approaches 1.1800

EUR/USD manages to reverse Tuesday’s pullback, advancing to two-day highs near the 1.1800 hurdle in the latter part of Wednesday’s session. The pair’s decent uptick comes on the back of the modest retracement in the US Dollar, as investors continue to closely follow developments on the trade front and news from the White House in the wake of President Trump’s SOTU speech.

GBP/USD challenges multi-day highs near 1.3530

GBP/USD leaves behind the previous day’s decline and regains fresh upside traction on Wednesday, surpassing the 1.3500 barrier in a context of a modest decline in the Greenback and a generalised improved mood in the risk-linked space. Meanwhile, the US tariff narrative continues to dictate the mood among market participants after Presidet Trump’s SOTU speech failed to surprise markets.

Gold remains bid and close to $5,200

Gold buyers are returning to the fold on Wednesday, targeting the $5,200 area and possibly beyond, after Tuesday’s corrective dip from monthly highs. The rebound in the precious metal comes as the US Dollar loses traction, with Trump’s SOTU speech offering little fresh direction and AI-related nerves continuing to ease.

Crypto Today: Bitcoin, Ethereum, XRP test rebound strength as ETF inflows return

Bitcoin, Ethereum and Ripple are gaining traction at the time of writing on Wednesday, amid persistent market doldrums. The Crypto King is up over 2% intraday, trading above $65,000 from the day’s opening of $64,058.

Nvidia earnings to influence AI trade and broader market sentiment

For the last three years, Nvidia has been the engine of the AI boom, and now Wall Street is watching to see whether that momentum can keep going. High-growth stocks have been struggling to maintain their bullish trend in 2026.

Cosmos Hub Price Forecast: ATOM rebounds slightly, bearish outlook remains intact

Cosmos Hub (ATOM) price rebounds, trading above $2.05 at the time of writing on Wednesday, after undergoing a sharp correction since last week. Weakening on-chain and derivatives data support a bearish outlook, while technical analysis remains unfavorable.