EUR/USD Technical Analysis
The euro has rallied significantly toward the 1.09 level but is struggling to stay above it. It will be interesting to see if we can break above the recent swing high around 1.0940, as doing so would be a strong bullish signal that could push the euro even higher. Much of this movement is driven by rising bond yields in Germany, which impact the interest rate differential that had previously favored the United States.
While the market appears overextended, trends can persist longer than expected. It’s too soon to start shorting this pair for a mean reversion trade, as there haven’t been clear signs of exhaustion. Although some wicks suggest hesitation, a meaningful pullback has yet to occur.
