EUR/USD Retreats from Peaks, but Bulls Remain Focused on Higher Targets

EUR/USD extended its strong rally into a second straight session on Thursday, climbing to its highest level in three months as bullish momentum remained firmly in control.

The pair continues to draw support after Wednesday’s 0.85% jump, its strongest daily gain since March 19, with buyers gaining confidence following a decisive break above the 200-day moving average at 1.1628 and the 61.8% Fibonacci retracement of the 1.1849/1.1324 decline at 1.1648. The move also saw the pair push through the key psychological barrier at 1.1700.

Some consolidation or limited profit-taking may emerge after the recent surge, although any pullback is expected to be contained above the former Fibonacci resistance at 1.1648. Holding above this level would preserve the positive outlook and offer fresh opportunities for bullish positioning, with upside targets seen at 1.1725, the 76.4% Fibonacci retracement, followed by the 1.1800 zone, which marks an important support-turned-resistance area from early May.

Technical indicators on the daily chart remain firmly bullish, supported by strengthening momentum and the recent breakout signals. However, overbought conditions suggest the pair could pause for a brief correction before attempting another leg higher.

A sustained move below the 200-day moving average would be an early warning that bullish momentum is fading and could weaken the near-term technical structure.

Res: 1.1710; 1.1725; 1.1800; 1.1849
Sup: 1.1690; 1.1648; 1.1628; 1.1610