EUR/USD Bulls Eye 1.0600 – Uptrend Intact Above 1.0460 EUR/USD Analysis – February 17, 2025
Euro Gains 2% in a Winning Week as Dollar Struggles Amid Trade Policy Uncertainty
The US dollar remains volatile as markets react to uncertainty surrounding Trump's potential tariff plans. Traders are closely watching for new policy announcements that could introduce reciprocal tariffs, potentially affecting international trade balances.
Over the past six weeks, EUR/USD has been fluctuating within a range of 1.02 to 1.05, showing indecisiveness in the broader trend. However, recent price action suggests that the pair is gaining bullish momentum as long as key support levels hold.
Technical Outlook
EUR/USD remains in an uptrend, with bullish momentum expected to continue as long as the price stays above the 1.0460 - 1.0520 range. A sustained move above this zone would likely drive the pair toward 1.0600, and a breakout above this resistance level could accelerate gains toward 1.0677 and 1.0740.
However, if the pair fails to hold above 1.0440 and closes an H4 candle below this level, the bullish momentum could weaken, leading to a potential pullback toward 1.0367. A deeper decline below 1.0367 may expose further downside levels at 1.0288 and 1.0226, but at this stage, buying on dips remains the favored approach in alignment with the prevailing uptrend.
Key Levels
Pivot Line: 1.0470 - 1.0440
Resistance Levels: 1.0600, 1.0677, 1.0740
Support Levels: 1.0367, 1.0288, 1.0220
Market Sentiment
While EUR/USD shows short-term bullish strength, much depends on the upcoming trade policy decisions. If tariffs are imposed, the US dollar could regain strength, potentially limiting the euro’s upside. However, if risk sentiment improves, the euro may continue its upward trajectory.