Title: EUR/USD Extends Its Gains: In-Depth Analysis of September 9, 2025
Original Article Source: Economies.com
Original Author: Economies.com Analyst Team
In the latest trading session on September 9, 2025, the euro continued to strengthen against the US dollar, extending a recent bullish trend. EUR/USD has been showing positive momentum after successfully breaching key technical resistance levels, indicating the possibility of further upside in the short term. This article delves into technical factors, economic background, and potential scenarios to provide a comprehensive outlook on the EUR/USD currency pair.
EUR/USD Overview: Sustained Upside Momentum
The EUR/USD pair built on previous gains as it traded firmly above pivotal resistance levels. This behavior confirms continued bullish control over the market, rendering the price action increasingly optimistic from a technical perspective.
– The pair sustained a move above 1.0880, a crucial resistance threshold that has now turned into a support level.
– This breakthrough indicates strong buyer presence and increased probability of further appreciation over the near term.
– Momentum indicators suggest continued upward trajectory, provided no disruptive macroeconomic developments arise.
Technical Indicators Supporting the Bullish Outlook
Several key technical tools and indicators bolster the positive sentiment surrounding the EUR/USD pair:
1. Moving Averages:
– The 50-day simple moving average (SMA) has crossed above the 100-day SMA, forming a bullish crossover pattern.
– The price trades well above both the 50-day and 100-day SMAs, reinforcing a positive short- and medium-term view.
2. Relative Strength Index (RSI):
– The RSI currently hovers near 65, indicating ongoing bullish momentum without entering overbought territory.
– A steady RSI signals sustained interest from buy-side traders.
3. Bollinger Bands:
– The pair has maintained a position near the upper Bollinger Band, suggesting the uptrend is being tested but not exhausted.
– The price action hugging the upper range is a sign of increased volatility associated with bullish sentiment.
4. Fibonacci Retracement:
– EUR/USD recently surpassed the 61.8 percent Fibonacci retracement level based on the previous decline from 1.1130 to 1.0710.
– This suggests the next relevant level resides around 1.1020, which could act as a barrier or continuation trigger.
Pressures from the US Dollar
The strength of the EUR/USD pair is partly attributed to recent weakness in the US dollar. Several key factors have contributed to dollar depreciation:
– Softer labor market data released earlier in the week has dampened expectations of future interest rate hikes by the Federal Reserve.
– Diminished inflationary pressures, as measured by recent CPI readings, have reduced urgency for the Fed to adopt an aggressive tightening stance, negatively impacting USD demand.
– Ongoing political uncertainties in Washington have led investors to reduce exposure to dollar-denominated assets.
Bullish Scenario Analysis
If EUR/USD maintains its current trajectory above the newly established support levels, certain upside targets come into focus:
– Immediate resistance is expected near 1.0970, a level that corresponds to prior price congestion.
– A clean break and stabilization above 1.0970 would open pathways toward 1.1020, aligning with both fib retracement targets and psychologic resistance thresholds.
– The longer-term projection could target 1.1130, a high from earlier in the year, assuming economic and monetary policy landscapes remain favorable.
Key Bullish Milestones to Monitor:
– Sustained trading above 1.0880
– Breakout above 1.0970
– Reaching and stabilizing above 1.1020
– Continuation to 1.1130
Bearish Correction Risks Still Present
Despite optimistic movement, certain risks may usher in short-term corrective actions. Traders and analysts need to remain aware of these factors:
– If the pair fails to hold above the 1.0880
Read more on EUR/USD trading.