EUR/USD Price Analysis: Pair climbs above 1.0485 as bullish momentum strengthens

EUR/USD advances on Friday, marking a solid recovery to 1.0485.
Technical indicators point to strengthening momentum, with the pair nearing short-term resistance.
Focus shifts to whether buyers can maintain traction above the 1.0500 psychological level.

Patricio Martín FXStreet

The EUR/USD pair ended the week on a bullish note, climbing 0.66% to settle at 1.0485 on Friday. This move signals a continuation of its recovery, following recent consolidation within a relatively narrow trading range. The pair’s ability to maintain upward pressure highlights growing buyer confidence as it approaches key resistance levels.

Technical readings reflect the strengthening bullish bias. The Relative Strength Index (RSI) has surged to 62, well into positive territory and rising sharply, indicating robust buying interest and room for further gains. Meanwhile, the Moving Average Convergence Divergence (MACD) histogram is printing rising green bars, confirming growing upward momentum and underscoring increased demand.

For the immediate outlook, the 1.0500 mark will act as a pivotal resistance, with a decisive break above it opening the door to the next target at 1.0530. On the downside, support rests at 1.0450, followed by the 1.0420 level, which could serve as a safety net if selling pressure re-emerges. Traders will watch these levels closely to assess the pair’s ability to sustain its bullish trajectory.

EUR/USD daily chart

Author

Patricio Martín

FXStreet

Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD drops to daily lows near 1.1630

EUR/USD now loses some traction and slips back to the area of daily lows around 1.1630 on the back of a mild bounce in the US Dollar. Fresh US data, including the September PCE inflation numbers and the latest read on December consumer sentiment, didn’t really move the needle, so the pair is still on course to finish the week with a respectable gain.

GBP/USD trims gains, recedes toward 1.3320

GBP/USD is struggling to keep its daily advance, coming under fresh pressure and retreating to the 1.3320 zone following a mild bullish attempt in the Greenback. Even though US consumer sentiment surprised to the upside, the US Dollar isn’t getting much love, as traders are far more interested in what the Fed will say next week.

Gold makes a U-turn, back to $4,200

Gold is now losing the grip and receding to the key $4,200 region per troy ounce following some signs of life in the Greenback and a marked bounce in US Treasury yields across the board. The positive outlook for the precious metal, however, remains underpinned by steady bets for extra easing by the Fed.