EUR/USD tests an upward move supported by the MACD indicator and market fundamentals

The EUR/USD currency pair shows clear signs of strengthening, supported by positive technical signals and favorable fundamental conditions. The MACD indicator, as one of the key tools of technical analysis, confirms the increasing bullish momentum for this currency.

Asian session brings new energy to the EUR/USD pair

During the latest Asian session, EUR/USD resumed buying interest near the 1.1710 level, extending a strong rebound after a decline earlier in the week, when the pair approached a nearly four-week low at 1.1660. The current rate hovers around 1.1735, reflecting a 0.10% increase over the past 24 hours. This movement suggests the market is well-positioned to test higher highs, especially given favorable macroeconomic conditions.

The US dollar is weakening for the second consecutive day, retreating from Monday’s peak—the highest level since December 10—amid rising expectations that the Federal Reserve will maintain a dovish stance. Simultaneously, discussions about the possible end of the European Central Bank’s (ECB) rate cut cycle support the euro, directly boosting the upward momentum of the EUR/USD pair.

MACD confirms bullish scenario strength

Breaking above the 1.1735 level—coinciding with the 100-hour moving average (SMA) and the 50% Fibonacci retracement from the move between 1.1808 and 1.1660—strengthens the optimistic outlook for this currency pair. Notably, the MACD indicator recently turned positive and shows a clear upward trend. This confirmation signals increased buying momentum and potential for further gains.

The RSI (Relative Strength Index) at 59 adds weight to this bullish narrative, suggesting there is still room for the pair to strengthen without risking technical overbought conditions. The combination of rising MACD and moderate RSI readings creates an ideal setup for traders seeking confirmation of continued upward movement.

Key resistance levels and scenarios for the coming days

The nearest significant technical resistance can be identified around the 61.8% Fibonacci retracement level, near 1.1700. A decisive break above this area would be another confirmation of the strength of the corrective rebound and could open the way to test higher resistance levels. Conversely, failure to break through this critical zone could cause EUR/USD to revert to its previous consolidation range, halting the current rally.

It is worth noting that this technical analysis employs a multi-indicator approach, combining signals from MACD, RSI, and key Fibonacci levels, providing a solid basis for assessing the current dynamics of EUR/USD.