EUR/USD Ignites: 1.4% Surge Breaks 100-Day SMA, Bulls Target 1.0560!

EUR/USD experienced a significant surge following the European trading session, propelling the pair beyond the 1.0520 level as bullish momentum intensified. This upward trajectory was marked by a decisive break above the crucial 100-day Simple Moving Average (SMA), a technical milestone that solidified the bullish sentiment. The pair has now amassed a near 1.40% gain since the start of the week, demonstrating a clear shift in market dynamics. Technical indicators are aligning with this bullish narrative, with the Moving Average Convergence Divergence (MACD) printing fresh green bars, signaling strengthening upward momentum, and the Relative Strength Index (RSI) climbing into positive territory, indicating growing buying interest.

However, the path ahead is not without obstacles. Immediate resistance is emerging around the 1.0560 zone, a level where sellers could potentially step in to cap further gains. A successful breach of this resistance could pave the way for a test of the psychologically significant 1.0600 level. Conversely, on the downside, the first line of support lies at 1.0480. A failure to hold above this level could trigger a pullback, potentially inviting increased selling pressure and a retest of lower support levels.

The pair’s continued advance on Tuesday, maintaining its position above a key resistance area, underscores the strength of the current bullish trend. The fresh MACD green bar and the rising RSI, now firmly in positive territory, provide further confirmation of the improving conditions for buyers. The market’s focus now shifts to the 1.0560 resistance. Should the bulls manage to overcome this hurdle, a more substantial move towards 1.0600 could be on the cards. Conversely, a break below the 1.0480 support could lead to a retracement, with the 20-day SMA, currently hovering near 1.0450, acting as the next key support level. Traders will be closely monitoring these levels for potential trading opportunities as the EUR/USD pair navigates this critical juncture.