EUR/USD outlook: Rises to new 2025 high as dovish Fed deflates Dollar
EUR/USD
Fresh bullish acceleration extends into second consecutive day and pushed EURUSD to new 2025 high (1.0559) on Tuesday.
Weaker dollar on dovish shift in monetary policy outlook, as US Treasury Secretary signaled stronger policy easing, after a series of weak US economic data, with markets pricing in three 25 bp cuts this year, was the main driver of the single currency
Little help for dollar was seen on anticipated safe haven demand after the USA imposed new tariffs.
On the other hand, the Euro received boost from signals that the bloc is working on increase of spending on defense, which may provide some support to economic growth.
Bulls cracked pivotal barriers at 1.0533/29 (recent range tops) and pressure another key resistance at 1.0573 (Fibo 38.2% of 1.1214/1.0177 downtrend) but need a clear break above this zone to signal an end of sideways phase and bullish continuation.
Technical picture on daily chart is overall positive, as bullish momentum is strengthening and rising Tenkan and Kijun-sen are diverging after formation of bull-cross.
However, closing above cracked 100DMA (1.0517) is minimum requirement to keep fresh bulls in play and focus shifted to the upside.
Markets focus on important economic releases in coming days – EU February Services PMI, ECB interest rate decision (25bp cut is expected) and US NFP.
Res: 1.0559; 1.0573; 1.0630; 1.0695.
Sup: 1.0471; 1.0426; 1.0395; 1.0360.
Interested in EUR/USD technicals? Check out the key levels
Author
Slobodan Drvenica
Windsor Brokers
Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.
