The EUR\/USD pair has risen above the 1.1800 threshold, eyeing the nine-day EMA barrier at 1.1836. The 14-day Relative Strength Index (RSI) has improved to a neutral 53, indicating better momentum. Initial support is found at the 50-day EMA of 1.1737.<\/p>\n
The pair has rebounded after two losing days, trading at approximately 1.1810 in Asian markets on Tuesday. There’s a potential bearish reversal as it barely stays within the ascending channel. The nine-day EMA is the immediate resistance, with the short-term averaging above medium-term, maintaining a bullish outlook.<\/p>\n
The EUR\/USD is anchored above the 50-day EMA but remains under the nine-day EMA limiting further gains. If the pair successfully reclaims the nine-day EMA, it could target 1.2082, last seen in June 2021, and possibly towards the channel’s upper edge at 1.2290. A dip to the 1.1737 mark may herald risks towards the two-month low of 1.1578.<\/p>\n
The Eurozone, using the Euro, is the second most traded currency behind the US Dollar. The European Central Bank (ECB) influences the Euro through monetary policy and interest rate decisions. High rates or expectations of increases are generally beneficial for the Euro.<\/p>\n
We are seeing the EUR\/USD push against the 1.1836 resistance, and a sustained break above this level could be a key buying signal for the coming weeks. Traders might consider call options with strike prices around 1.1900, looking towards the 1.2082 region. The latest Eurozone inflation data for January showed a reading of 2.1%, which supports a stronger Euro as it keeps pressure on the ECB.<\/p>\n
Conversely, if resistance at the nine-day EMA holds firm, we could see a retreat towards the 50-day EMA support at 1.1737. A decisive break below this level would signal a bearish shift, making put options with a 1.1700 strike price attractive. Looking back to late 2025, we saw similar setups where disappointing industrial data from Germany, which recently posted a manufacturing PMI of 49.5, capped rallies and led to a retest of lower supports.<\/p>\n
The neutral Relative Strength Index of 53 and the tight range between key moving averages suggest a period of consolidation before a larger move. With one-month implied volatility currently sitting around 7.5%, strategies like buying a straddle could be effective for traders expecting a breakout but unsure of the direction. This allows for profiting from a significant price swing either up or down.<\/p>\n
We should also consider that the US Dollar is currently in a broad retreat, providing a lift for the pair and making the bullish case more immediate. The market is still digesting the impact of the recent partial US government shutdown on economic data releases, creating uncertainty that weakens the dollar. Traders should remain aware of these external factors influencing the pair’s direction.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" EUR\/USD trades above 1.1800, eyes EMA resistance as momentum improves; bullish trend intact despite risks.<\/p>\n","protected":false},"author":62,"featured_media":16966,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-40783","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\n\t\t