EUR/USD: The possibility of a continued breakthrough above the reference point 1.1735 amid upward pressure

The EUR/USD currency pair is broadly supported by the weakening of the US dollar. This is strongly backed by the divergence in policy directions between the Federal Reserve and the European Central Bank. This positive outlook is confirmed by fundamental factors pointing towards a continued correction.

During Tuesday’s Asian session, the EUR/USD price attracted new buyers around 1.1710 and gained momentum from a strong rebound from nearly four-week lows at 1.1660. The current spot price is 1.1735, up approximately 0.10% today, and is likely to continue breaking through supported by favorable fundamentals for the EUR.

The US dollar has been under downward pressure for the second consecutive day after being pushed away from the highest level since December 10, remaining elevated since last Monday. The easing expectations from the Fed are the main driver. Additionally, market bets that the ECB will keep interest rates steady have become a key support for the euro, further boosting the EUR/USD.

From a technical perspective, a breakout during the day above the consolidation point at 1.1735 is a positive signal. This level includes the 100-hour moving average and the 50% Fibonacci retracement of the decline from 1.1808 to 1.1660. Confirmation from these indicators has created solid positive momentum.

The MACD indicator has turned positive, showing increasing upward momentum. The RSI at 59 still indicates potential for continued breakout without signs of exhaustion. These indicators together reinforce the implication that EUR/USD is likely to continue breaking higher.

The next resistance level is the 61.8% Fibonacci retracement, located in the mid-1.1700s. Breaking through this resistance would signal a strong breakout from the current price base, while failure to do so could open opportunities for consolidation within the recent range.

(This technical analysis is supported by AI tools)