EUR/USD Bulls in Command as Key Bullish Signals Suggest Rally Extension Toward 1.20
Technical Analysis:
EUR/USD surged to a fresh 3-1/2-year high on Monday, climbing as far as 1.15728 after decisively breaking above crucial structural resistance in the 1.1495–1.1500 zone. This breakout signals the end of the recent consolidation phase that had persisted since the pair reached 1.1475 on April 11, opening the door for further bullish extension. Technically, the pair’s positive momentum is reinforced by multiple significant bullish indicators, including the recent upward crossover of the 55-day moving average (DMA) above the 200-DMA—a classic bullish signal historically associated with sustained and powerful upward moves.
Immediate technical indicators further underline the bullish narrative, as daily and monthly RSI readings continue to trend higher, clearly supporting strong upward momentum. Monday’s session saw the pair close firmly higher at 1.1520, registering an impressive daily gain of approximately +1.14%, and highlighting robust buying interest. Near-term support is clearly established around the rising 5-DMA near 1.1450–1.1470, which has consistently provided reliable dynamic support throughout the recent bullish phase.
Looking ahead, the next critical resistance zone emerges around 1.1600–1.1620—marked by the November 2021 monthly high and November 2020 monthly low. A decisive break above this zone would clear the way for a further rally toward structural resistance near 1.1700. Given the strength of current bullish signals, a move toward the psychological 1.2000 barrier and the pivotal 200-month moving average appears increasingly plausible, particularly if market sentiment continues to shun U.S. assets, amplifying upward pressure on EUR/USD.