**Euro Forecast: EUR/USD Holds Following First 1.1500 Re-Test**
*Authored by James Stanley | Original article published on FOREX.com*
The EUR/USD currency pair has shown signs of renewed strength as it revisited the 1.1500 level for the first time since early 2022. This level has historically served as a critical psychological and technical barrier for the Euro, suggesting that its re-test is a significant development for forex traders and market analysts alike. The pair has held its ground following the renewed push higher, hinting at both resilience in the Euro and potential technical setups as traders look ahead to further developments in monetary policy and macroeconomic factors.
This analysis discusses key chart patterns, market reactions around the 1.1500 level, and the factors contributing to recent euro strength. In addition, it focuses on critical levels to watch and offers insights into how upcoming fundamental data releases might impact the short- to mid-term trajectory of the EUR/USD pair.
## Key Takeaways
– EUR/USD has successfully held its ground after retesting the 1.1500 mark
– A bullish trend remains intact, especially if the pair consolidates above 1.1400
– Dollar weakness has supported recent EUR/USD gains
– Market participants eye potential continuation patterns and key resistance levels
– Upcoming ECB and Fed policy updates could significantly impact the pair’s direction
## Technical Overview: EUR/USD Respects the 1.1500 Barrier
The 1.1500 level is more than just a round number; it has historically functioned as a pivot zone in past market cycles. In early 2022, EUR/USD began its descent from this area during a sharp phase of U.S. dollar strength fueled by Federal Reserve tightening. Now, for the first time in over two years, the euro has again approached this once-formidable resistance point with renewed vigor.
Following a measured advance from earlier lows, EUR/USD came close to the 1.1500 zone and quickly encountered selling pressure. However, the pullback was modest, with buyers stepping in again as the pair hovered around the 1.1450–1.1475 region. This behavior suggests an evolving sentiment in the marketplace, with bullish undercurrents continuing to support the pair.
Key technical observations:
– The pair has sustained higher-lows and higher-highs, reflecting a bullish structure on both daily and weekly timeframes
– The most recent leg higher began from just above the 1.0700 level, indicating a well-established uptrend
– The 1.1500 level serves as potential resistance while the 1.1275–1.1300 range is emerging as strong support
– Indicators such as Relative Strength Index (RSI) remain in bullish territory, though slightly overbought
## Longer-Term View: Resistance-Becomes-Support Outlook
Longer-term technical setups suggest the possible evolution of the 1.1500 area from a resistance zone to a support platform, provided that EUR/USD can confidently break and hold above it. This would highlight a transition from consolidation into breakout territory and may offer bullish continuation potential for medium- to long-term traders.
A central bullish narrative unfolds when examining the weekly chart:
– Momentum has been building steadily for months, as the pair staged a recovery from sub-1.0500 levels
– A bullish breakout pattern — specifically an ascending triangle — formed on the longer-term charts, often signaling continued upward bias upon breakout
– The recent re-test indicates the first attempt to clear what many technical analysts refer to as the “neckline” of a reversal formation
Should prices sustain above key resistance zones, a potential medium-term target could emerge near 1.1700, which aligns with prior swing highs from early 2021. A breach beyond that zone could attract technical traders looking for the next major supply levels.
## Dollar Dynamics: A Key Driver
The weakening U.S. dollar has been one of the biggest contributors
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