EUR/USD is showing positive momentum, approaching 1.1755 during the early European session on Friday. The major pair maintains a positive outlook, remaining above the significant 100-day EMA, accompanied by rising RSI momentum. The primary resistance level to monitor is 1.1820, while the first support level is identified at 1.1655. The EUR/USD pair is currently positioned in positive territory, trading around 1.1755 during the early hours of European trading on Friday.
The European Central Bank maintained its rates at the December policy meeting, indicating a reduced urgency for additional cuts. This stance has offered some support to the Euro against the US Dollar. ECB President Christine Lagarde highlighted a data-driven, “meeting-by-meeting” strategy. She further stated that the central bank is not pre-committing to any future rate path; however, some economists anticipate that rates will remain steady through 2026.
On the USD’s front, the expectation that US President Donald Trump will appoint a dovish successor to Fed Chair Jerome Powell, whose term concludes in May, may exert downward pressure on the Greenback and provide support for the major pair. Trump expressed his expectation that the upcoming Fed Chairman will maintain low interest rates and will not “disagree” with him. The remarks are expected to amplify concerns among stakeholders regarding the autonomy of the Federal Reserve. On the daily chart, the EUR/USD pair is currently positioned at 1.1755. The 100-day EMA is positioned at 1.1635, trending upwards, while the price remains above this level, maintaining a medium-term bullish outlook. RSI increases to 59.8, indicating a strengthening momentum while remaining clear of overbought territory. Maintaining a position above the EMA would preserve the potential for upward movement.
The price is positioned above the Bollinger middle band at 1.1738, with the bands contracting, indicating a decrease in volatility following the recent rebound. The upper band at 1.1820 currently limits upward movement, and a daily close above this level may lead to further gains; conversely, a retreat below the middle band would reveal the lower band around 1.1655. In summary, the current momentum and trend indicators suggest a strategy of purchasing during dips until there is an increase in volatility.