EUR/USD Exchange Rate Today: Analyzing the key resistance at 1.1735 amid bullish momentum

USD Movement and Its Impact on Currency Pairs

The US dollar (USD) continues to decline for the second consecutive day as market bets shift according to signals from the Federal Reserve (Fed) indicating fatigue from interest rate hikes. Meanwhile, the EUR/USD currency pair repeatedly fails to weaken despite expectations that the European Central Bank (ECB) will not cut interest rates in the near term. This situation creates an environment conducive to the buildup of higher corrections in this pair.

Price Action and Market Momentum

During Tuesday’s Asian session, buyers re-entered near the 1.1710 zone after a strong rebound from around 1.1660 (the lowest level in nearly four weeks) in the previous session. The current trading price is approximately 1.1735, representing a 0.10% increase for the day. This continued strength suggests that market participants are gaining more confidence in further upward adjustments.

Technical Confirmation from Key Indicators

The 1.1735 level is identified as a significant confluence point, comprising the 100-hour simple moving average (SMA) and the 50% Fibonacci retracement level of the decline from 1.1808 to 1.1660. A clear break above this level increases confidence that the bullish trend remains the main focus.

The Moving Average Convergence Divergence (MACD) has turned positive and is showing upward movement. This signals improved bullish momentum, supported further by the Relative Strength Index (RSI), which reads at 59 and is not in overbought territory. Both indicators together suggest that the momentum continues to favor higher corrections.

Target Levels and Scenarios

The 61.8% Fibonacci retracement level, located within the mid-1.1700s, is identified as the next resistance point. If buyers can sustain the price above this barrier, it would strengthen the case for a robust correction higher. Conversely, if the breakout fails, EUR/USD may face consolidation or slight pullback within the range of the support zone, challenging the bullish case and introducing new downside risks to key events.

(This technical analysis is supported by AI tools)