EUR/USD Rally Ahead? Key Levels to Watch as Bulls Regain Control

The Bitcoin ownership chartEUR/USD currency pair demonstrates renewed strength in early Asian trading, climbing to 1.0815 and breaking a three-day downtrend. This upward movement comes amid growing concerns about potential economic slowdown in the United States, with market participants closely monitoring trade policy developments that could impact dollar valuation.

Technical indicators paint a constructive picture for the euro against the greenback. The pair maintains solid footing above the crucial 100-day Exponential Moving Average, while the Relative Strength Index holds firmly in bullish territory at 59.35. These technical factors combine to suggest the potential for further upside in the near term.

Market attention now turns to critical economic indicators scheduled for release later in the session. Preliminary Purchasing Managers Index data from both the Eurozone and United States could provide fresh catalysts for currency movements. German economic figures will also be scrutinized for signs of regional economic health.

From a technical perspective, the immediate resistance level stands at 1.0955, representing the March 18 high. A decisive break above this level could open the door for a test of psychological resistance at 1.1000, with additional upside potential towards 1.1111. On the downside, initial support appears at 1.0775, with more substantial buying interest likely emerging near the 1.0600-1.0605 zone.

The current technical setup suggests traders should watch for confirmation of bullish momentum, particularly if the pair can sustain its position above key moving averages. Market participants will need to balance technical factors with fundamental developments, especially regarding transatlantic economic performance and policy directions.