EUR/USD – Bullish Bias Holds Above 1.0800, Focus Shifts to German Debt Vote on Tuesday

The euro remains in extended consolidation just below a fresh five-month high, following a strong two-week rally.

The technical outlook on the daily chart remains bullish, though an overbought RSI and weakening bullish momentum suggest the risk of a deeper pullback.

Near-term bias stays to the upside as long as the price holds above the key support zone at 1.0820/1.0800 (10DMA, 61.8% Fibonacci retracement of the 1.1214–1.0177 move, and psychological level). A sustained hold above this area keeps the focus on upside targets at 1.0969 and 1.1000 (76.4% Fibonacci retracement and psychological resistance).

The recent rally has been driven primarily by a weaker dollar and supportive fundamentals. Market attention now turns to Germany’s upcoming vote on historic changes to borrowing rules, which could pave the way for a massive €500 billion increase in state borrowing aimed at strengthening defense and stimulating economic growth.

Res: 1.0947; 1.0969; 1.1000; 1.1024
Sup: 1.0868; 1.0820; 1.0800; 1.0726