EUR/USD Technical Setup: Can Bulls Hold Above 1.1755 as Resistance Looms at 1.1820?

EUR/USD finds support near 1.1755, but traders must watch the 1.1820 resistance level. The pair maintains bullish structure with price holding comfortably above the 100-day EMA at 1.1635. Immediate downside protection sits at 1.1655; a breakdown below this could signal trend reversal.

Market Backdrop: Policy Divergence Fuels EUR Strength

The Euro has received a boost from recent ECB messaging that suggested a measured approach to future policy decisions. During December’s policy meeting, the central bank maintained its interest rate stance while hinting at a cautious, data-driven strategy ahead. ECB leadership emphasized flexibility rather than predetermined paths, which has provided confidence to EUR holders.

Meanwhile, remarks from US President Donald Trump regarding his preference for lower interest rates and his influence over the Fed’s next leadership have introduced uncertainty around the Greenback’s near-term direction. Such comments have raised questions about monetary policy independence, potentially weighing on USD and providing tailwinds to currency pairs like EUR/USD and even cross-pairs such as ADA to AUD.

Technical Picture: Momentum Remains Intact

On the daily timeframe, EUR/USD trades at 1.1755 with encouraging technical signals. The 100-day exponential moving average slopes upward at 1.1635, and price’s position above this key moving average confirms intermediate-term buying interest.

The Relative Strength Index (RSI) has climbed to 59.8, reflecting strengthening momentum without entering overbought territory—a favorable setup for continued advances. The Bollinger Bands have tightened noticeably, signaling lower volatility after the recent recovery phase.

Key Price Levels for the Session

Upside Resistance: The upper Bollinger Band at 1.1820 represents the first meaningful barrier to further gains. A daily close above this level would likely encourage bulls toward higher targets. Support Levels: Price sits above the middle Bollinger Band at 1.1738. A retreat below this would expose the lower band near 1.1655, which marks the initial support zone. Breaking 1.1655 could shift momentum back to the downside.

Trading Takeaway

The technical setup remains constructive for EUR/USD bulls, particularly while price holds the 100-day EMA. Traders monitoring multiple currency pairs—including EUR/USD and alternative cross-rates like ADA to AUD—should remain attentive to breakouts above 1.1820 for confirmation of extended bullish moves. Until volatility expands meaningfully, pullbacks toward the middle band offer buying opportunities for those following the trend.