EUR/USD: Gradual rise to 1.22 by year-end – Commerzbank

💡 DMK Insight

Commerzbank’s bullish outlook on EUR/USD signals potential opportunities for traders: here’s why. With a forecast of 1.19 in Q1 2026 and 1.22 by year-end, traders should consider positioning themselves for a gradual appreciation of the Euro against the Dollar. This aligns with broader market trends where the Eurozone’s economic recovery is gaining traction, especially as the ECB maintains a more hawkish stance compared to the Fed. If the Euro strengthens, it could lead to increased volatility in USD pairs, impacting everything from commodities to emerging markets. Watch for key resistance levels around 1.18 and support near 1.15, as these could dictate short-term trading strategies. But don’t overlook potential risks; if U.S. economic data surprises to the upside, it could challenge this bullish narrative. Traders should keep an eye on upcoming economic indicators, particularly from both the Eurozone and the U.S., to gauge sentiment shifts. The real story is how quickly the market reacts to these forecasts—monitoring the daily charts for breakouts or reversals will be crucial in the coming weeks.