EURUSD Moves Toward Key Resistance Level as Predicted!!

The EURUSD pair is following the bullish path we anticipated earlier this week, steadily moving toward its 2nd major resistance zone. As forecasted on this October, improving market sentiment and a softer U.S. dollar have helped the euro strengthen against the greenback, signaling renewed buying pressure in the short term.

Currently, EURUSD is trading higher near the 1.16940 range in 4h time frame, inching closer to the crucial resistance area around 1.17382 as predicted before. This zone has acted as a major cap in recent sessions, and traders are closely watching for a potential breakout. Our earlier analysis suggested that if EURUSD continued to hold above its short-term support at 1.0870, the pair would likely advance toward this resistance and that scenario is now unfolding exactly as expected.

Technical Analysis

Momentum indicators such as the Relative Strength Index (RSI) and MACD are showing positive signals, confirming the strengthening bullish bias. A clear move and daily close above would likely open the door to further gains, with the next upside targets at 1.18214 (Resistance-III) see the chart.

On the flip side, if EURUSD fails to break above resistance, short-term profit-taking could bring the pair back toward 1.16622. However, the overall trend structure remains constructive, as long as price action stays above the key support level.

Fundamental Drivers

The euro’s recovery is supported by a weaker U.S. dollar, as investors continue to price in potential Federal Reserve rate cuts in 2025. Meanwhile, the European Central Bank (ECB) has maintained a patient stance, emphasizing the importance of upcoming data before adjusting policy. This divergence in monetary expectations is favoring the euro, particularly as inflation in the eurozone shows signs of stabilizing.

Traders are now awaiting upcoming U.S. CPI data and eurozone inflation reports, which could determine whether EURUSD extends its rally beyond resistance or consolidates further.

Outlook

In summary, EURUSD is moving precisely as predicted, approaching the first resistance level with growing bullish momentum. A confirmed breakout above 1.17382 would strengthen the case for a continued upward move toward 1.18214 in the coming sessions. Traders should watch for confirmation and manage entries carefully as the pair approaches this critical zone.