EUR/USD Technical Analysis March 18, 2025
As of March 18, 2025, the EUR/USD currency pair continues to exhibit resilience, maintaining its position above the 1.0900 mark. This strength is underpinned by various technical indicators and fundamental factors influencing the forex market.
Current Price Levels and Technical Indicators:
The EUR/USD pair is trading higher at intraday levels, supported by the dominant primary uptrend and continuous buying pressure above its 50-day simple moving average. However, as the pair nears the pivotal resistance at 1.0945, it faces some downward pressure.
The Relative Strength Index (RSI) is approaching overbought territory, suggesting potential for a short-term correction. Nevertheless, the overall bullish trend remains intact, with the pair trading above key moving averages.
Support and Resistance Levels:
Immediate support for EUR/USD is observed at 1.0884, aligning with the 38.2% Fibonacci retracement level of the recent upward movement from 1.0358 to 1.0946. A breach below this support could lead to a deeper correction towards 1.0721. On the upside, the pair faces strong resistance at 1.0945. A decisive break above this level could pave the way for a test of the psychological 1.1000 mark.
Fundamental Factors:
Several fundamental factors are contributing to the current dynamics of the EUR/USD pair:
US Dollar Weakness: The US dollar has been under pressure due to concerns over global trade tensions and their potential impact on economic growth. Investors are cautious about the aggressive tariff policies and their implications for the broader economy.
German Economic Stimulus: The euro has found support from expectations of a significant economic stimulus package in Germany. The proposed €500 billion fund aims to bolster infrastructure and stimulate growth in the eurozone’s largest economy.
Monetary Policy Outlook: The Federal Reserve, along with the Bank of Japan and the Bank of England, is expected to maintain current interest rates in their upcoming meetings. Market participants are keenly awaiting any forward guidance that could influence future monetary policy decisions.
Conclusion:
The EUR/USD pair continues to trade within a bullish framework, supported by both technical indicators and fundamental developments. Traders should monitor key support and resistance levels, as well as upcoming economic events, to navigate potential market movements effectively.
GBP/USD Technical Analysis March 18, 2025