EUR/USD Price Analysis: Trades with negative bias below one-month peak, bullish potential intact

EUR/USD pulls back from over a one-month peak amid a modest USD uptick on Monday.
Dovish Fed expectations cap the USD and help limit losses ahead of the ECB on Thursday.
The technical setup favors bullish traders and supports prospects for some near-term gains.

Haresh Menghani FXStreet

The EUR/USD pair attracts some sellers on the first day of a new week and for now, seems to have snapped a three-day winning streak to over a one-month peak, around the 1.0910 area touched on Friday. Spot prices currently trade below the 1.0900 mark amid a modest US Dollar (USD) uptick, though any meaningful corrective decline seems elusive.

From a technical perspective, the recent breakout through the 1.0800 confluence hurdle – comprising 50-day, 100-day and 200-day Simple Moving Averages (SMAs) – and a downward-sloping line favors bullish traders. Moreover, oscillators on the daily chart have been gaining positive traction and suggest that the path of least resistance for the EUR/USD pair is to the upside amid dovish Federal Reserve (Fed) expectations.

Some follow-through buying beyond the 1.0910-1.0915 area mark will reaffirm the constructive outlook and lift the EUR/USD pair to the next relevant resistance near the 1.0960-1.0965 region. The momentum could extend beyond the March peak, around the 1.0880 area, and allow spot prices to reclaim the 1.1000 psychological mark for the first time since January heading into the European Central Bank (ECB) meeting on Thursday.

On the flip side, any meaningful dip is likely to attract fresh buyers near the descending trend-line resistance breakpoint, near the 1.0870-1.0865 area. This should help limit the downside for the EUR/USD pair near the 1.0800 confluence support. The latter is followed by support near the 1.0755-1.0750 horizontal zone, which if broken could drag spot prices below the 1.0700 mark, towards the June swing low, around the 1.0665 region.

Economic Indicator

ECB Monetary Policy Statement

At each of the European Central Bank’s (ECB) eight governing council meetings, the ECB releases a short statement explaining its monetary policy decision, in light of its goal of meeting its inflation target. The statement may influence the volatility of the Euro (EUR) and determine a short-term positive or negative trend. A hawkish view is considered bullish for EUR, whereas a dovish view is considered bearish.

EUR/USD remains offered below 1.1600, seems vulnerable near multi-month low

The EUR/USD pair struggles to capitalize on the overnight bounce from the 1.1530 region, or the lowest level since November 2025, and lower for the third consecutive day on Wednesday. Spot prices slide back below the 1.1600 mark during the Asian session and seem vulnerable to slide further.

GBP/USD weakens to near 1.3300 as geopolitical risks bolster US Dollar

The GBP/USD pair attracts some sellers to around 1.3310 during the early European session on Wednesday. Escalating conflict in the Middle East triggers a "flight to safety," supporting the US Dollar against the Pound Sterling. Traders will take more cues from the US ADP Employment and ISM Services Purchasing Managers Index reports, which are due later on Wednesday.

Gold sticks to intraday gains above $5,150; upside seems limited amid bullish USD

Gold preserves its modest intraday gains through the Asian session on Wednesday and currently trades just above the $5,150 level, up around 1.30% for the day. Investors remain concerned about a prolonged conflict in the Middle East and its impact on the global economy amid an already uncertain environment.

Bitcoin, Ethereum and Ripple struggle for direction as consolidation persists

Bitcoin, Ethereum and Ripple prices trade with a cautious tone at the time of writing on Wednesday as upside momentum continues to fade across the broader crypto market. BTC remains within a parallel channel, ETH struggles below key resistance, while XRP remains fragile within a descending channel. These top three cryptocurrencies by market capitalization continue to struggle to establish a directional bias amid the consolidation phase.

When rates start driving the bus through a war zone

The volatility regime itself is also changing character. EM carry trades thrive in calm markets. They suffocate in environments that resemble Buckaroo Banzai trading conditions, where headlines move faster than models. That is exactly the world investors are now trying to recalibrate to. Euro rate volatility had been remarkably subdued even while equities were wobbling. That stability is now being questioned, and once volatility leaks into rates it rarely stays contained. Indeed, carry trades love calm seas. War turns the ocean into white water.

Ripple falters amid sell-off jitters and negative funding rates

Ripple (XRP) has come under pressure, drifting lower to $1.35 at the time of writing on Tuesday. The over 2% correction looks poised to erase the previous day’s gains, which lifted the remittance token to $1.42.