EUR\/USD rose for a second session and traded near 1.1820 in Asian hours on Monday. The 14-day RSI is 51, which is neutral, after moving back above the midline. <\/p>\n
If the RSI moves above the low-50s, upward momentum may extend. If it falls below 50, downside risks may shift towards support levels. <\/p>\n
On the daily chart, the pair remains above the 50-day EMA, which supports the broader bias. The nine-day EMA is flat near the current price, which may limit near-term follow-through. <\/p>\n
EUR\/USD is trading around the nine-day EMA at 1.1820. A daily close above this level could set a stronger upward bias and open a move towards 1.2082, the highest level since June 2021. <\/p>\n
A close below the nine-day EMA could bring the 50-day EMA at 1.1775 into view. A fall below the 50-day EMA could increase downside pressure towards 1.1578, the two-month low set on 19 January.<\/p>\n
We see the EUR\/USD is trading in a tight range around the 1.1820 level, right on its nine-day moving average. This technical pressure point is building as we get conflicting signals from the European Central Bank and the Federal Reserve in early 2026. This indecision suggests the pair is waiting for a strong catalyst to pick a direction.<\/p>\n
The stabilizing RSI near 51 and the flattened moving average indicate that a period of low volatility could be ending soon. Looking back from 2025, we saw similar consolidations that often preceded a sharp breakout. Current market data supports this, with the Deutsche Bank Euro Currency Volatility Index (EUVIX) having recently climbed to 8.5, its highest level in three months.<\/p>\n
This rising uncertainty makes buying options an attractive strategy to position for a significant move. A long strangle, involving the purchase of an out-of-the-money call option and an out-of-the-money put option, would profit from a breakout in either direction. This allows us to capitalize on the upcoming price swing without needing to predict its direction correctly.<\/p>\n
For traders leaning bullish, the recent Eurozone flash CPI data for January 2026, which came in at 2.1%, may force the ECB to maintain a hawkish stance. Buying call options with a strike price near 1.1850 could be a direct way to play for a move toward the 1.2082 resistance. The goal is to establish this position before market conviction hardens and pushes option premiums higher.<\/p>\n
On the other hand, if the pair closes back under the 1.1820 mark, a bearish stance is warranted. The latest US jobs report showed a solid 195,000 jobs added but a slowdown in wage growth, creating a mixed picture that could still favour the dollar. Buying put options with a strike near 1.1775 would be a way to target a slide toward the two-month low at 1.1578.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" EUR\/USD rises near 1.1820; RSI neutral. Above nine-day EMA targets 1.2082; below 1.1775 risks 1.1578.<\/p>\n","protected":false},"author":62,"featured_media":16965,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-42525","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/42525","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/comments?post=42525"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/42525\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media\/16965"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media?parent=42525"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/categories?post=42525"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/tags?post=42525"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}