EUR/USD Technical Setup: Bullish Structure Intact as Key Resistance Emerges at 1.1820

MidnightSeller · 2026-01-15T12:55:29+00:00

The EUR/USD pair is showing strong upward momentum, trading above the 100-day EMA. Factors influencing EUR strength include the European Central Bank's cautious stance on rates and concerns over future Federal Reserve leadership, which may pressure the USD. Technical analysis suggests key resistance at 1.1820 and support at 1.1655, with volatility expected to increase as Bollinger bands compress.

MidnightSeller

2026-01-15 12:55:29

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Trading around 1.1755, the EUR/USD pair shows sustained upside momentum in early European hours Friday. The major currency pair continues trading comfortably above the 100-day EMA, maintaining its medium-term bullish structure. Market technicians note that the RSI indicator stands at 59.8, reflecting strengthening momentum without reaching overbought territory—a signal that buyers retain room to push higher.

What’s Driving the EUR Movement?

On the policy front, the European Central Bank maintained its current rate stance during December proceedings. ECB President Christine Lagarde signaled a cautious stance toward additional easing, adopting a “meeting-by-meeting” approach rather than committing to any preset path. This measured tone has underpinned the Euro, as markets recalibrate expectations for rate stability through 2026.

Simultaneously, speculation about Federal Reserve leadership succession is weighing on the US Dollar. With Fed Chair Jerome Powell’s mandate expiring in May, President Trump’s comments favoring a dovish replacement—one aligned with lower rate policies—have sparked concerns about central bank autonomy. Such rhetoric typically pressures the Greenback, providing tailwinds for the EUR to USD pair.

Technical Levels to Track

The daily chart reveals EUR/USD trades just above the middle Bollinger band at 1.1738. The upper band now sits at 1.1820, forming the initial resistance zone to monitor. A decisive daily close above this level could accelerate gains further upside.

Support floors are equally important: a pullback below the midpoint band would likely test the lower band positioned near 1.1655, representing the first downside barrier for traders to watch.

Bandwidth compression in the Bollinger bands suggests volatility remains muted after the recent recovery phase. Once bands expand, traders should anticipate larger price swings. For now, the uptrend remains intact as long as EUR/USD stays above the 100-day EMA at 1.1635, keeping the overall technicals favorable for long positioning on dips.

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