EUR/USD Price Outlook: Maintains upward momentum, initial resistance appears beyond 1.1800

EUR/USD Maintains Upward Momentum Near 1.1755

During early Friday trading in Europe, the EUR/USD pair is holding steady in positive territory around 1.1755. The European Central Bank (ECB) opted to leave interest rates unchanged at its December meeting. The central bank's latest guidance indicated a reduced likelihood of imminent rate cuts, which has lent support to the Euro against the US Dollar.

ECB President Christine Lagarde reiterated that future policy decisions will be guided by incoming data and assessed on a meeting-by-meeting basis. She also clarified that the ECB is not making any firm commitments regarding the direction of future rates, although some analysts expect rates to remain unchanged through 2026.

On the US Dollar side, speculation is growing that President Donald Trump may appoint a more dovish successor to Federal Reserve Chair Jerome Powell, whose term concludes in May. Trump has expressed his preference for a Fed Chair who would maintain low interest rates and align closely with his views. These remarks have sparked concerns among investors and policymakers regarding the independence of the Federal Reserve, potentially weighing on the Greenback and benefiting the EUR/USD pair.

Technical Overview

On the daily chart, EUR/USD is trading at 1.1755. The 100-day EMA, currently at 1.1635, is trending upward, and the pair remains above this level, supporting a medium-term bullish outlook. The Relative Strength Index (RSI) has climbed to 59.8, reflecting strengthening momentum without indicating overbought conditions. As long as the price stays above the EMA, the bullish trajectory is likely to persist.

The pair is also positioned above the middle line of the Bollinger Bands at 1.1738, with the bands themselves narrowing—a sign of decreased volatility following the recent rebound. The upper band, located at 1.1820, is acting as resistance for now; a daily close above this level could open the door for further gains. Conversely, a move below the middle band would expose support near the lower band at 1.1655. Overall, technical indicators suggest that buying on dips remains favorable until volatility picks up again.

(This technical analysis incorporates insights generated with the assistance of AI tools.)