EUR/USD extends gains amid continued US dollar softness across markets.
Market expectations for Fed policy easing support the currency pair's upward momentum.
Technical setup shows critical resistance test near 1.1100 psychological level.
The How much would 0 dollars in Bitcoin be worth today?EUR/USD currency pair maintains its bullish trajectory during Friday's trading session, building on Thursday's rebound from the 1.1000 support zone. This marks the second consecutive day of gains as market participants continue adjusting positions ahead of next week's crucial Federal Reserve meeting. The pair currently tests the upper boundary of its recent trading range near 1.1090, supported by broad-based dollar weakness.
Recent economic data from the United States has reinforced expectations for monetary policy accommodation, with Thursday's PPI figures coming in below analyst projections. This development has increased speculation about the potential scope of upcoming Fed rate adjustments, creating headwinds for the greenback. Meanwhile, the European Central Bank's recent policy communication has provided measured support for the euro, contributing to the pair's current technical setup.
From a chart perspective, the EUR/USD now approaches significant resistance near the upper boundary of a multi-week descending channel formation. A confirmed breakout above this technical barrier could signal completion of the recent corrective phase and potentially open the door for additional upside momentum. Key levels to watch include the 1.1155 intermediate resistance followed by the psychologically significant 1.1200 handle.
On the downside, immediate support appears near the 1.1060-1.1065 zone, with more substantial buying interest likely emerging around the 1.1000 round number. A decisive break below the channel support near 1.0975 would alter the technical picture significantly, potentially triggering renewed selling pressure that could test levels below 1.0900 in subsequent trading sessions.
EUR/USD Technical Perspective
The current technical configuration presents traders with several important considerations. The descending channel pattern that has contained price action since mid-August remains the dominant feature on intermediate timeframes. Market participants will closely monitor price behavior near this critical resistance zone for potential breakout or rejection signals that could determine near-term directional bias.
