EUR/USD Current Price: 1.0906
- Geopolitical Woes Take Center Stage with Focus on Russia, Ukraine, and the Middle East
- German Encouraging Headlines Helped EUR/USD Reach a Fresh 2025 High
- EUR/USD Finding Near-Term Buyers Around 1.0900, Corrective Slide in Sight
The EUR/USD pair reached a peak of 1.0954, marking a fresh high for 2025. However, the pair saw a retreat before the American session opening and is currently struggling to maintain the 1.0900 mark.
Current tensions are rooted in geopolitical issues. President Donald Trump and President Vladimir Putin are set to discuss the normalization of US-Russia relations and the end of the Russia-Ukraine conflict. Simultaneously, conflicts in the Middle East have reignited, with Hamas rejecting a US ceasefire proposal, leading to renewed military operations by Israel.
Positive headlines emerged from Germany, with the Social Democratic Party proposing significant spending to bolster defense and infrastructure in light of Russian actions in Ukraine and US unpredictability.
In economic news, Germany’s ZEW Survey on Economic Sentiment showed improvement in March, while the Eurozone sentiment also saw a surge. However, the assessment of the current German situation remained negative.
On the US front, housing figures and minor data were released, with Building Permits down 1.3% and Housing Starts up 11.2% in February. The Export Price Index increased by 0.1%, while the Import Price Index rose by 0.4%, providing a boost to the US Dollar.
EUR/USD Short-Term Technical Outlook
Technically, the EUR/USD pair maintains a bullish stance, with indicators showing a higher high and higher low despite some intraday losses. Moving averages are supportive, with the 20 SMA leading the way above the 100 SMA and 200 SMA.
In the short term, a corrective slide may be on the horizon as the pair hovers near the 20 SMA on the 4-hour chart. Support levels are identified at 1.0895, 1.0830, and 1.0790, while resistance levels are at 1.0925, 1.0960, and 1.1000.
Support Levels: 1.0895, 1.0830, 1.0790
Resistance Levels: 1.0925, 1.0960, 1.1000
Analysis:
The EUR/USD pair is currently influenced by geopolitical tensions, economic data, and technical indicators. The ongoing conflicts in Russia, Ukraine, and the Middle East, coupled with positive German headlines, have impacted the pair’s movement. Economic sentiment in the Eurozone and Germany has shown improvement, while US housing data has provided support for the US Dollar.
From a technical standpoint, the EUR/USD pair remains bullish, with moving averages and indicators pointing towards further upside potential. However, a corrective slide may be imminent in the short term, with key support and resistance levels identified for traders to monitor.
Understanding these factors is crucial for investors and traders looking to navigate the currency markets effectively. By staying informed about geopolitical developments, economic data releases, and technical analysis, individuals can make more informed decisions about their financial future and potential investment opportunities.