Technical Analysis:
EUR/USD extended its bullish momentum dramatically on Thursday, rising sharply to reach a fresh high of 1.1230, thereby completely reversing the recent losses triggered by uncertainties surrounding U.S. tariff policy. This significant upward move, which marks a five-session high, was driven by ongoing investor reluctance to invest in U.S. markets amid elevated trade-war risks. A continuation of risk aversion toward U.S. equities and a record-setting gold price at $3174.83 underscore the strong bearish sentiment surrounding the U.S. dollar, contributing further to EUR/USD’s bullish technical environment.

Technically, EUR/USD’s breakout past key resistance at the April 3 high and the previous yearly peak set on September 25 has ended the recent consolidation phase, establishing a solid bullish foundation. Momentum indicators provide strong support for a sustained bullish trajectory, with the daily and monthly RSI indicators trending sharply upward, reinforcing the likelihood of continued gains. Moreover, the pair’s ability to hold firmly above crucial technical levels, such as the 76.4% Fibonacci retracement level of the 1.1214–1.0125 downtrend and both the 5-day and 21-day moving averages, further strengthens bullish conviction.

However, bullish traders must navigate through formidable resistance clustered in the 1.1214–1.1276 region, corresponding to important previous highs from September 2024 and July 2023. A sustained breakout above this critical resistance zone would likely trigger additional bullish momentum toward the significant long-term resistance levels between 1.1500–1.1600. On the downside, immediate technical support rests near 1.1150, with stronger short-term protection at the 5-day moving average around 1.1080. Provided investor aversion to U.S. assets persists, EUR/USD bulls remain strongly favored to challenge higher price levels in coming sessions.