|premium|

EUR/USD Analysis: Upside bias remains well in place and targets 1.1000

  • EUR/USD sees its daily upside dented on renewed USD-buying.
  • US Advanced GDP Growth Rate surprised to the upside in Q4.
  • Investors’ attention now shifts to the PCE figures due on Friday.

EUR/USD faces some selling pressure on the back of the recovery in the greenback, which appears particularly exacerbated after flash GDP figures showed the economy expanded more than expected during the October-December 2022 period (+2.9%).

The improvement in the dollar also appears propped by a positive surprise from Durable Goods Orders and weekly Claims, which altogether continue to give evidence of a resilient economy and a tight labour market.

While these results definitively reinforce the persistent hawkish narrative from rate setters at the Federal Reserve, markets continue to see the probability of a pivot in the Fed’s monetary conditions in the near term. The latter was almost exclusively behind the decline in the buck since the beginning of the new year, although it seems that the Fed – and Chief Powell – will have the last word on this debate at next week’s FOMC gathering.

Short-term technical outlook

Now that EUR/USD recorded a fresh YTD high at 1.0929 earlier in the session, it should quickly leave it behind to initially challenge the 1.0936 level (weekly top April 21 2022) and once that area is cleared, the pair could shift the focus to the psychological 1.1000 barrier, a region last traded back in early April of the last year. While spot navigates the vicinity of the overbought territory, a corrective decline should not be ruled out in the very near term. The occurrence of such a scenario could see the minor support at 1.0766 (low January 18) initially revisited ahead of the 2-month support line in the 1.0670 zone.

Premium

You have reached your limit of 3 free articles for this month.

Start your subscription and get access to all our original articles.

Subscribe to PremiumSign In

Author

Pablo Piovano

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

More from Pablo Piovano
Share:

Editor's Picks

EUR/USD gathers traction, approaches 1.1800

EUR/USD manages to reverse Tuesday’s pullback, advancing to two-day highs near the 1.1800 hurdle in the latter part of Wednesday’s session. The pair’s decent uptick comes on the back of the modest retracement in the US Dollar, as investors continue to closely follow developments on the trade front and news from the White House in the wake of President Trump’s SOTU speech.

GBP/USD challenges multi-day highs near 1.3530

GBP/USD leaves behind the previous day’s decline and regains fresh upside traction on Wednesday, surpassing the 1.3500 barrier in a context of a modest decline in the Greenback and a generalised improved mood in the risk-linked space. Meanwhile, the US tariff narrative continues to dictate the mood among market participants after Presidet Trump’s SOTU speech failed to surprise markets.

Gold remains bid and close to $5,200

Gold buyers are returning to the fold on Wednesday, targeting the $5,200 area and possibly beyond, after Tuesday’s corrective dip from monthly highs. The rebound in the precious metal comes as the US Dollar loses traction, with Trump’s SOTU speech offering little fresh direction and AI-related nerves continuing to ease.

Crypto Today: Bitcoin, Ethereum, XRP test rebound strength as ETF inflows return

Bitcoin, Ethereum and Ripple are gaining traction at the time of writing on Wednesday, amid persistent market doldrums. The Crypto King is up over 2% intraday, trading above $65,000 from the day’s opening of $64,058.

Nvidia earnings to influence AI trade and broader market sentiment

For the last three years, Nvidia has been the engine of the AI boom, and now Wall Street is watching to see whether that momentum can keep going. High-growth stocks have been struggling to maintain their bullish trend in 2026.

Cosmos Hub Price Forecast: ATOM rebounds slightly, bearish outlook remains intact

Cosmos Hub (ATOM) price rebounds, trading above $2.05 at the time of writing on Wednesday, after undergoing a sharp correction since last week. Weakening on-chain and derivatives data support a bearish outlook, while technical analysis remains unfavorable.