EUR/USD: Strength driven by geopolitical factors – ING

💡 DMK Insight

EUR/USD is on the rise, and here’s why you should pay attention: breaking through major resistance levels signals a shift in market sentiment. The recent geopolitical developments and potential dollar sales from Japan are key drivers behind this strength. Traders should note that improving Eurozone PMIs, especially from Germany, could further bolster the euro’s position. If the pair holds above the recent resistance, it could pave the way for a bullish trend, possibly targeting higher levels in the near term. However, keep an eye on any sudden shifts in geopolitical tensions or economic data that could reverse this momentum. On the flip side, if the dollar strengthens unexpectedly due to U.S. economic indicators, it might create a pullback. Watch for the 1.10 level as a critical support point; a drop below this could signal a trend reversal. For now, the bullish sentiment in EUR/USD is worth monitoring closely.