EUR/USD Analysis Summary Today
- Overall Trend: Neutral Zone..
- Support Levels for EUR/USD Today: 1.1610 – 1.1550 – 1.1480
- Resistance Levels for EUR/USD Today: 1.1690 – 1.1730 – 1.1800
EUR/USD Trading Signals:
- Buy EUR/USD from the support level of 1.1580 with a target of 1.1800 and a stop-loss at 1.1500.
- Sell EUR/USD from the resistance level of 1.1770 with a target of 1.1500 and a stop-loss at 1.1840.
Technical Analysis of EUR/USD Today:
For the second consecutive session across trusted trading platforms, the EUR/USD pair is attempting to halt its recent losing streak, which reached a five-week low at the 1.1618 support level. Following the release of U.S. inflation data, recovery attempts touched the 1.1698 resistance level, with the pair currently stabilizing around 1.1645 at the start of Wednesday’s session. Markets are now awaiting a round of critical U.S. economic releases—including the Producer Price Index (PPI) and Retail Sales figures—both scheduled for 15:30 Egypt time.
The US dollar suffered another setback against other major currencies following a dramatic US event. Federal Reserve Chairman Jerome Powell faced financial accusations amidst pressure from President Trump to lower US interest rates as desired by the White House. However, the defense of Powell and his policies by Fed officials temporarily halted the dollar’s losses.
The Future of U.S. Interest Rates Continues to Impact EUR/USD
The future of US interest rates continues to influence EUR/USD trading, according to Forex market activity. The EUR/USD exchange rate gradually declined towards the 1.16 level after the US dollar made net gains during the week. With strong US data sufficient to dampen expectations of a near-term interest rate cut by the Federal Reserve, financial markets are increasingly focused on whether the Fed will maintain or reverse its current accommodative stance through 2026.
Overall, this reassessment is expected to be the main driver of the EUR/USD exchange rate in the near term. Technically, based on the daily chart, EUR/USD is attempting to return to the “Neutral Zone” between 1.1685 and 1.1750. Success here would pave the way for a return to the psychological resistance of 1.1800, which signals a potential trend reversal to bullish. Currently, the 14-day Relative Strength Index (RSI) is hovering around 42 (approaching the 50 neutral line), while the MACD lines are beginning an upward shift, awaiting strong new positive momentum.
Conversely, a strong bearish scenario would require the “bears” to successfully push the pair toward the psychological support of 1.1500.
EUR/USD Outlook for the Coming Months
In this context, Crédit Agricole expects EUR/USD to retreat to 1.14 by mid-year, with a further decline to 1.10 by the end of 2026. However, following short-term volatility, ING Bank expects the pair to rise above 1.20.
Regarding external factors, U.S. economic data has been mixed but remains robust enough for markets to price in an additional Fed rate cut in January. Meanwhile, geopolitical developments remain a core driver for early 2026.
In this regard, according to Crédit Agricole, US President Trump’s decision to remove Venezuelan President Maduro could prolong the war in Ukraine by easing pressure on Russian President Putin to reach an agreement. The bank noted: “The conflict in Ukraine could remain a major source of uncertainty, thus hindering business and consumer confidence in the Eurozone for the foreseeable future. We also doubt that the Eurozone will benefit from any sustained decline in energy prices resulting from the growth of Venezuelan crude oil exports at present.”
In the same vein, Crédit Agricole commented: “We also note that the euro remains among the largest long currencies of the G10, according to our foreign exchange positioning data.” ING Bank, for its part, anticipates losses for the US dollar, stating, “A large part of the dollar’s 10% decline is attributable to currency hedging rather than outright selling of US assets. We believe this decline may continue somewhat into 2026, given our expectation of a further 50 basis point interest rate cut by the Federal Reserve and accelerated Eurozone economic growth thanks to German fiscal stimulus. We remain optimistic, predicting that the EUR/USD pair will end 2026 at around 1.22.”
Trading Advice:
The EUR/USD is currently in a neutral zone. It requires strong catalysts to move steadily in either direction, and we prefer to wait for larger losses before considering buying again.
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