EURUSD – bulls near the 1.20 barrier

The euro remains firm, holding near a fresh multi-month high of 1.1907 reached on Monday, following last week’s strong rally and a gap-higher opening at the start of this week.

The recent advance was mainly driven by a weaker U.S. dollar, with signs suggesting the greenback could weaken further.

Friday’s close above the broken 76.4% Fibonacci level from 1.1918/1.1468 (at 1.1812) confirmed a strong bullish bias.

Monday’s trading, despite opening with a gap higher, showed hesitation as the pair approached the key barrier at 1.1918 (the 2025 peak and the highest level since June 2021). The resistance significance and overbought daily indicators caused caution. However, renewed strength on Tuesday pushed through the 1.1918 pivot, easing concerns of a pause.

A daily close above this level is needed to confirm the bullish signal and open the way toward the next major resistances at 1.1950 (200-day moving average), 1.1984 (bearish trendline connecting the 2018 and 2021 peaks), and 1.2000 (psychological level).

Multiple bullish moving average crossovers and strong positive momentum support the bullish outlook, but overbought conditions warrant caution.

Any consolidative or corrective action should hold above 1.1850 (today’s low and the broken upper boundary of the bullish channel) to keep the broader bullish trend intact.

Res: 1.1950; 1.1984; 1.2000; 1.2025
Sup: 1.1900; 1.1850; 1.1812; 1.1760