it reached 1.2000 on Wednesday after rising to 1.2082 the night before, marking a strong four-day rally. Pressure on the US dollar has intensified following comments by US President Donald Trump.
He stated that he is not concerned about the weakening of the dollar and considers its fall to be moderate. The market interpreted this as a sign that the administration might be willing to tolerate a weaker dollar to improve export competitiveness.
An additional blow to the dollar came from growing political uncertainty in Washington, with Trump making new statements about Greenland and continuing to criticize the independence of the US Federal Reserve.
Further compounding the dollar's decline is growing speculation about possible joint currency intervention between the United States and Japan to support the yen, which has boosted demand for the yen.
Investors' attention is on the , which expires tonight. The Federal Reserve is widely expected to maintain its current interest rate, but close attention is being paid to possible signals about the timing of future rate cuts. Current expectations suggest two 25 basis point cuts before the end of the year
Technical analysis
On the H4 chart, EUR/USD has formed an ascending wave towards 1.2080. A break above this resistance level would indicate a continuation of the uptrend. For now, the pair is in a corrective phase, with support around 1.1935. The correction is confirmed by the MACD indicator, which shows the histogram and signal line above zero and forming a descending wave. After the correction, the uptrend may resume towards 1.2100 and potentially 1.2200, although corrections could occur during the rise.
On the H1 chart, after testing the resistance, EUR/USD is forming a correction. A bounce from the support at 1.1935 would indicate a continuation of the bullish wave. The signal lines of the stochastic indicator are approaching the 20 level, suggesting that the correction may continue before resuming the uptrend. The next growth target could be 1.2100.
Conclusion
The EUR/USD pair continues to show bullish momentum, supported by a weaker US dollar and rising geopolitical tensions. The ongoing correction could offer buying opportunities, with further growth likely towards 1.2100 and 1.2200, depending on the upcoming Federal Reserve decision and global market dynamics.
By RoboForex Analysis Department
Disclaimer: Any forecast contained herein is based on the author's personal opinion. This analysis cannot be considered trading advice. RoboForex assumes no responsibility for trading results based on the trading recommendations and reviews contained herein.
