EURUSD pair continues to rise for the third consecutive session, reaching 1.1675 during early European hours on Thursday. Optimism over peace developments in Eastern Europe and ongoing US Dollar weakness are propelling the Euro higher.
Peace Hopes Fuel EURUSD Demand
Despite weaker-than-expected German data industrial production dropped by 1.9% in June and the trade surplus narrowed the Euro remained resilient. Markets are increasingly hopeful following reports that US peace envoy Steve Witkoff met with Russian President Vladimir Putin, signaling possible progress toward a Ukraine-Russia ceasefire summit.
This geopolitical optimism has reduced safe-haven demand for the US Dollar, pushing traders back into riskier assets like the EURUSD.
Fed Rate Cut Bets Keep USD Subdued
The US Dollar remains under pressure as investors grow confident in a dovish Fed policy shift. Following recent soft US labor market figures and slower wage growth, traders are now pricing in two 25-bps rate cuts by year-end. Meanwhile, President Trump’s renewed threats of 100% tariffs on semiconductors and potential sanctions on India and China are escalating fears of a stagflationary US scenario.
Market Sentiment Turns Risk-On
The combination of diminishing geopolitical risks and a less aggressive Fed outlook has improved overall market sentiment. US Treasury yields have also declined, further reducing the appeal of the Dollar. This environment supports further upside in EURUSD, provided technical resistance levels give way.
Technical Analysis: Bulls Eye 1.1700–1.1745 Zone
The EURUSD pair is currently testing a critical resistance near 1.1675–1.1700. A decisive daily close above this area would confirm bullish continuation toward the next resistance at 1.1745 (June high), followed by 1.1800.
Conversely, immediate downside support lies at 1.1625, which served as a prior resistance and now acts as a support flip. A break below that could extend declines to 1.1570, close to the 20-day EMA.
Key Technical Levels:
Resistance levels: 1.1700, 1.1745, 1.1800
Support levels: 1.1625, 1.1570
Bias: Bullish while above 1.1570
Conclusion: Euro May Extend Gains If 1.1700 Breaks
EURUSD remains on a bullish trajectory amid peace deal hopes and Fed rate cut bets. A sustained move above the 1.1700 level could attract more buyers, while dips may remain limited unless 1.1570 is broken decisively.
The pair now faces a make-or-break moment near the 1.1700 handle. A sustained break above this level would likely trigger fresh bullish momentum, opening the path to 1.1745 and potentially 1.1800, as markets increasingly price in a Fed policy pivot before year-end. Moreover, if headlines continue to support Ukraine-Russia ceasefire optimism, the Euro could further benefit from reduced regional risk premiums.
However, failure to clear this zone could lead to a technical rejection, dragging the pair back toward the support zone at 1.1625 and even 1.1570, where buyers may look to re-enter.
Disclaimer: This blog is for informational purposes only and does not constitute financial advice. Always conduct your own research and consult a professional advisor before making investment decisions.
[sc_fs_multi_faq headline-0=”h2″ question-0=”Why is EUR/USD rising today?” answer-0=”The pair is gaining on hopes of a Ukraine ceasefire, which is lifting global risk appetite and weakening demand for the safe-haven US Dollar. Additionally, Fed rate cut bets are adding downside pressure to USD. ” image-0=”” headline-1=”h2″ question-1=”What are the key technical levels for EUR/USD now?” answer-1=”Immediate resistance lies at 1.1700, followed by 1.1745. On the downside, support is seen at 1.1625 and 1.1570.” image-1=”” headline-2=”h2″ question-2=”Could EUR/USD reach 1.1800 this week?” answer-2=”A strong break above 1.1700 and continued geopolitical optimism could open the way toward 1.1800, especially if US data continues to disappoint.” image-2=”” count=”3″ html=”true” css_class=””]
