EUR/USD Bulls Aim for 2023 Peak as Investors Shun U.S. Assets; Key Resistance Zone Looms
Technical Analysis:
EUR/USD surged aggressively on Thursday, decisively erasing all losses incurred from President Trump’s tariff-delay announcement, and reaching a fresh five-session peak at 1.1230. This bullish price action reflects investors’ continued avoidance of U.S. assets amid sustained trade-war uncertainty. A broad sell-off in U.S. equities, coupled with gold rallying to an all-time high of $3174.83 and a surprising rally in the Chinese yuan despite ongoing tensions, further accentuates market disenchantment with dollar-denominated investments, underpinning EUR/USD’s bullish technical stance.
From a technical viewpoint, the EUR/USD breakout above critical resistance levels—the April 3 daily high and the previous 2024 peak from September 25—validates the recent bullish consolidation phase and signals potential for sustained upside. Momentum indicators strongly support further gains, with daily and monthly RSI readings firmly ascending, indicative of robust upward momentum. Additionally, EUR/USD remains comfortably above the 76.4% Fibonacci retracement of the significant 1.1214–1.0125 decline, as well as key short-term moving averages, particularly the 5-day and 21-day MAs, providing additional bullish confirmation.
Looking ahead, immediate resistance emerges within the 1.1214–1.1276 area—comprising critical highs from September 2024 and July 2023. A decisive break and daily close above this pivotal resistance zone would open the door to a significant bullish extension toward the longer-term technical targets at the psychologically important 1.1500–1.1600 region. Conversely, initial support is now defined at the 1.1150 area, followed closely by firmer support at the 5-day MA near 1.1080. As long as investor sentiment continues to shy away from U.S. assets, EUR/USD bulls will retain control, targeting higher levels.