08 Apr 2025

EUR/USD has attracted new buyers, ending a two-day decline as the US Dollar weakens broadly. The current technical indicators favor bullish traders, suggesting potential for further short-term gains. A decisive drop below the 200-hour Exponential Moving Average (EMA) would be necessary to undermine this positive outlook.

During the Asian trading session on Tuesday, the EUR/USD pair regained upward momentum, breaking its two-day losing streak and halting the recent decline from last week's peak, the highest level since September. This increase has pushed spot prices to approximately 1.0975, marking a new daily high, driven by renewed selling pressure on the US Dollar.

From a technical standpoint, the EUR/USD pair demonstrated resilience near the 200-hour EMA on Monday, and the subsequent upward movement supports bullish sentiment. Additionally, oscillators on both daily and hourly charts remain in positive territory, indicating that the most favorable direction for spot prices is upward.

However, it would be wise to wait for a sustained breakout above a short-term descending trend line, particularly around the psychological level of 1.1000, before making further bullish positions. Should this occur, the EUR/USD pair could rise to the overnight swing high near 1.1050, potentially advancing towards the 1.1100 level and the 1.1145 area, which represents the year-to-date peak.

Conversely, the 1.0940 level may provide some support prior to reaching the 100-hour EMA, located around the 1.0900 round number. This level is expected to serve as a crucial pivot point for short-term traders; a decisive breach could lead the EUR/USD pair down to the 1.0845 intermediate support, progressing towards the 1.0800 level and the 1.0735-1.0730 area, which corresponds to the low from March 27.

This latter level aligns with the significant 200-day Simple Moving Average (SMA). A clear break below this point would indicate that the EUR/USD pair has likely peaked in the short term, potentially setting the stage for a more substantial corrective decline.