**EUR/USD Price Forecast: Key 1.1770 Support Holds as Bulls Target 1.1919**
*Originally reported by TradingNews.com*
The EUR/USD currency pair has recently showcased bullish resilience, successfully maintaining the critical 1.1770 support level amid increasing market volatility and broader U.S. dollar fluctuations. As the bulls regroup, upward momentum builds towards the anticipated resistance near 1.1919. The following analysis dives deeper into recent price moves, key technical indicators, macroeconomic influences, and potential trading scenarios for this major currency pair.
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### Recent Market Overview
The euro has been gradually recovering against the U.S. dollar, driven by a combination of improving eurozone economic sentiment, a more dovish stance from the Federal Reserve, and weakening U.S. Dollar Index (DXY) performance.
– After briefly testing the 1.1770 support level, EUR/USD bounced firmly, signaling a strong bullish reaction.
– This move reflects profit-taking on long USD positions, as well as renewed investor confidence in the European recovery story.
– Traders have become increasingly optimistic about a sustained rebound towards 1.1919, which aligns with past resistance zones and psychological barriers.
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### Technical Analysis
The technical landscape for EUR/USD presents a constructive setup favoring continued upward movement. Several indicators and chart patterns support the case for bullish momentum, provided that short-term volatility remains contained.
#### Key Support and Resistance Levels
– **Support Levels**
– 1.1770: A critical horizontal support zone that has held firm multiple times in recent days. This level coincides with previous swing lows and confirms demand strength.
– 1.1730: Secondary support from a previous consolidation phase. A break below this level could open doors for a deeper correction.
– **Resistance Levels**
– 1.1850: A minor resistance barrier that must be overcome to clear the path toward 1.1919.
– 1.1919: Primary resistance based on historical data, marking a key level that was rejected during prior rallies.
– 1.2000: A psychological milestone that previously served as strong support, now turned resistance. Bulls may target this if momentum sustains beyond 1.1919.
#### Moving Averages
– **50-Day SMA**: Recently turned flat, suggesting that short-term sellers may be losing control.
– **200-Day SMA**: Holding an upward trajectory. Price action nearing this moving average lends further support to the bullish medium-term thesis.
#### RSI and MACD Indicators
– **Relative Strength Index (RSI)** is currently hovering near the 55 mark, rising steadily without exhibiting overbought conditions. This suggests room for further upward movement.
– **MACD (Moving Average Convergence Divergence)** recently posted a bullish crossover, signaling a shift in momentum from bearish to bullish.
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### Sentiment and Fundamentals
The euro’s recent strength has been partially fueled by softening expectations around U.S. interest rates and economic uncertainty in the U.S., balanced against growing optimism in the eurozone.
#### Contributing Factors:
– **Easing U.S. Inflation Data**
– Recent CPI and PCE prints have shown signs of easing inflationary pressures. This puts the Federal Reserve in a wait-and-see mode, reducing the odds of immediate tightening.
– Lower inflation translates into a weaker US dollar, supporting euro gains.
– **Stronger Eurozone Data**
– Economic indicators such as manufacturing activity, consumer sentiment, and GDP growth have surprised to the upside.
– The European Central Bank has maintained a steady tone, suggesting controlled inflation and supporting guidance for a moderate monetary policy path.
– **Risk Sentiment**
– As risk appetite increases globally, investors tend to favor higher-yielding or risk-sensitive assets. The euro benefits in such an environment, especially as the greenback’s safe-haven appeal moderates.
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### Market Scenarios to Watch
Given current dynamics and
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