The EUR/USD pair has continued its upward trend, approaching the 1.1300 level after the European session. Currently positioned between 1.1187 and 1.1473, bullish momentum drives the pair toward new highs for the year.
Technical indicators reflect a strong bullish trend, with the Relative Strength Index (RSI) at 75.43 indicating overbought conditions, while the MACD signals a buy. The Stochastic %K is at 74.94, and the Awesome Oscillator shows 0.03, suggesting potential short-term stabilisation.
Upward Moving Averages
The broader trend remains favourable, underpinned by upward-moving averages. Key moving averages include the 20-day SMA at 1.09102, 100-day SMA at 1.05556, and 200-day SMA at 1.07427, all indicating upward pressure.
Support is noted at levels 1.11728, 1.1103, and 1.10273. Traders may aim for the 1.14 mark if bullish movement persists, although overbought conditions could lead to a slight correction.
What we’re seeing with the EUR/USD pair is a continuation of its persistent climb, with the measured push toward the 1.1300 level giving the impression of confident upward pressure. The price action within the current range—1.1187 to 1.1473—suggests we’re still seated inside the stronger half of a determined move that, so far, hasn’t truly tested deep pullbacks.
When we look more closely at the indicators that typically provide early warnings or confirmations of trend shifts, the picture leans heavily towards steadiness for now, with a hint of caution. An RSI at 75.43 doesn’t just signal strength—it tells us the pace of gains is beginning to stretch beyond comfortable thresholds. In past experiences, these levels often precede a short breather or consolidation phase, even if the wider trajectory doesn’t yet reverse. The same can be said for the Stochastic %K at 74.94. It’s often overlooked, but when both of these sit together high up, the possibility of a modest retrace becomes harder to ignore.
The MACD, though, still favours buyers, showing alignment with the momentum that has driven prices higher since this wave began developing. A similar tone is echoed by the Awesome Oscillator, which—while neutral or barely green—doesn’t yet call for an end to this advance. All of this shapes a setting where caution isn’t panic, but rather patience.
Impact Of Moving Averages
Our attention is also pulled towards the direction set by the moving averages. These are not reacting—they’re still rising, which suggests that even any near-term dip would happen within a supportive environment. This matters. A 20-day average at 1.09102, for example, is well below current price, acting as a distant cushion rather than immediate support. The larger 100-day and 200-day averages follow that same pattern. They’re stretched out underneath current price activity, shadowing the idea that the path higher doesn’t appear forced or unstable—at least not yet.
Support levels might not see action immediately, but we still track 1.11728 and 1.1103 carefully. These are natural zones where market participants may circle back to take breathers or re-evaluate appetite. Price tests here could tell us more than candles do, depending on pace and volume.
Bullish sentiment, particularly among those positioned to benefit from short-to-medium-term options and forward contracts, tends to sharpen when psychological markers like 1.14 enter the conversation. However, a slight pullback before then would be no departure from the broader direction—it would just mean buyers may need to reposition before pressing further.
In the days ahead, we’re keeping one eye on tone shifts in European macro data releases and policy commentary. While the pair may not directly react with abrupt moves, gradual sentiment change could seed subtle resistance to further gains. Volatility might creep in—not violently, but enough to redefine short-term setups.
Now is a time for measured steps rather than chasing late momentum. We find value in waiting for better positioning, especially where pricing nears or exceeds overbought metrics. Temporary stabilisation after a sustained push is typically when risk-reward ratios begin to improve again, especially for those not yet involved.
Above all, awareness of stretched conditions paired with structurally bullish support defines what comes next—balance decisions on that tightrope.
