EUR/USD eyes pullback after hitting fresh multi-year highs
The EUR/USD currency pair surged to 1.1741, its highest level since September 2021, before pausing around 1.1700 today. Despite overbought conditions, technical indicators suggest the rally may continue with limited downside risk.
Healthy rally: room to run, but keep support levels in check
Charts show the pair is well above its 20-period moving average (~1.1500), signaling bullish dominance. The next upside targets lie at 1.1745, 1.1790, and 1.1840, while support zones around 1.1660, 1.1620, and 1.1575 offer cushioning.
Technical guideposts point to controlled upside
The intraday bias favors further gains if EUR/USD remains above 1.1589, with a key pivot at 1.1638. Breaking resistance around 1.1687–1.1745 could aim the pair toward Fibonacci projections near 1.1927. But falling below 1.1452 may lead to deeper consolidation.
What traders should monitor next
Watch for U.S. economic data (durable goods, GDP revisions) and any changes in Fed commentary. Meanwhile, any RSI weakness could spark a technical pullback. As long as critical support holds, the bullish path remains intact.