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EUR/USD Targets More Upside — Breakout In The Making?

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Aayush Jindal

Key Highlights

  • EUR/USD started a fresh increase above the 1.1280 resistance zone.
  • A connecting bullish trend line is forming with support at 1.1260 on the 4-hour chart.
  • GBP/USD is now struggling to clear the 1.3600 resistance zone.
  • USD/JPY could gain bullish momentum if it clears the 145.00 resistance zone.

EUR/USD Technical Analysis

The Euro formed a base above 1.1200 and started a fresh increase against the US Dollar. EUR/USD cleared the 1.1280 resistance for bullish moves.

Looking at the 4-hour chart, the pair traded settled above the 1.1280 level, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour).

The bulls pushed the pair above the 61.8% Fib retracement level of the downward move from the 1.1418 swing high to the 1.1210 low. On the upside, the pair could face resistance near the 1.1380 level. The next key resistance sits near the 1.1420 level.

The first major resistance sits at 1.1450. A close above the 1.1450 level could set the pace for another increase. In the stated case, the pair could even clear the 1.1500 resistance. The next major stop for the bulls could be near the 1.1580 resistance.

On the downside, immediate support sits near the 1.1300 level. The next key support sits near 1.1280. Any more losses could send the pair toward the 1.1250 pivot level in the near term. The main support could be near 1.1220.

Looking at GBP/USD, the pair started another increase, but the bulls seem to be facing hurdles near the 1.3600 level.

Upcoming Economic Events:

  • Euro Zone Manufacturing PMI for May 2025 – Forecast 49.4, versus 49.4 previous.
  • US Global Manufacturing PMI for May 2025 – Forecast 52.3, versus 52.3 previous.
  • US ISM Manufacturing Index for May 2025 – Forecast 48.7, versus 48.7 previous
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