EUR/USD Breakout Triggers Focus on Payrolls and Peace Deals
The EUR/USD currency pair has broken out of its long-running downtrend resistance after a series of positive factors converged to support the euro. One key factor was the decrease in expectations for Federal Reserve tightening, which pared back rate hike pricing to 42 basis points by June 2027.
Lower energy prices have also improved the outlook for the euro area economy, reducing one of the headwinds that had weighed on the common currency. Additionally, the recent intervention episode in Japan has put pressure on the US dollar, providing a near-term tailwind for EUR/USD.
The breakout above resistance at 1.1480 and the 50-day moving average has created a potential for a run higher, with the next level of resistance at 1.1550. A break above this level could lead to a test of the 100-day moving average, which has historically been significant in influencing price action.