The EUR/USD currency pair is currently navigating a narrow trading range above the 1.0400 mark as of Wednesday. A decisive move above the 1.0440 level could signify a potential bullish trend for the pair. The European Central Bank’s President, Christine Lagarde, is slated to speak at the World Economic Forum later today, which could provide some insight into future monetary policy, though it may not drastically affect the EURO ’s value unless specific comments are made regarding policy changes.
On Tuesday, after a brief decline during the European trading session, EUR/USD rebounded and ended the day slightly higher. The pair is exhibiting strong resilience in the current trading environment, maintaining its position above 1.0400 early Wednesday. With US stock futures indicating a bullish sentiment on Wall Street, the US Dollar is encountering challenges in sustaining its strength against other currencies, paving the way for a potential upward move in EUR/USD , provided that risk appetite remains favorable among investors.
Investors are also attentively monitoring remarks from U.S. President Donald Trump related to trade policies. His recent statements have included criticisms of the European Union and hinted at the possibility of tariffs on European imports. Should he announce stringent tariffs, it may negatively impact the EURO and lead to a decline in the EUR/USD exchange rate.
From a technical analysis perspective, the Relative Strength Index (RSI) on the 4-hour chart indicates a reading above 60, signaling ongoing bullish momentum for the currency pair. The immediate resistance level is at 1.0440, which corresponds to the Fibonacci 61.8% retracement as well as the 50-day Simple Moving Average. Should the pair experience downward pressure, support can be found at 1.0350, with further backing at 1.0320, indicating key levels to watch in the event of a reversal.
