EUR/USD Daily Market Analysis: Euro Holds Ground as Bulls Target 1.1710

EUR/USD remains in a consolidation phase on the daily timeframe, but the broader technical structure continues to lean moderately bullish. The pair is trading around the 1.1660–1.1675 area as traders assess the next direction for the euro against the U.S. dollar.

After recovering from its June lows, EUR/USD has maintained a generally constructive structure. However, the pair has recently struggled to extend gains above the 1.1710 area, creating a battle between buyers defending support and sellers protecting resistance.

EUR/USD Current Trend

On the daily chart, the immediate trend can best be described as bullish but consolidating.

EUR/USD remains above important medium-term moving-average support, while recent price action has produced a period of sideways movement rather than a decisive reversal. Technical readings also remain supportive, with the daily technical picture still showing a bullish bias.

The key question now is whether buyers can regain enough momentum to push the pair above the 1.1710 resistance zone. A confirmed daily close above this area would strengthen the bullish structure and potentially expose the 1.1800 region.

Key Resistance Levels

• 1.1710: Immediate and important resistance. A decisive daily breakout could signal renewed bullish momentum.
• 1.1750: Potential intermediate resistance following a successful break above 1.1710.
• 1.1800: Major psychological resistance and the next significant upside objective if the breakout is confirmed.

Key Support Levels

• 1.1650: Immediate support and an important area currently helping to stabilize the pair.
• 1.1620–1.1621: Key technical support. Holding above this region would help preserve the current bullish structure.
• 1.1580: A deeper support area to monitor if sellers gain control and the 1.1620 region fails.

The 1.1620–1.1650 zone is particularly important. As long as EUR/USD continues to hold above this area, the current consolidation can still be interpreted as a pause within a broader recovery rather than a confirmed bearish reversal.

Fundamental Drivers Today

The biggest immediate catalyst for EUR/USD is the release of the latest U.S. Personal Consumption Expenditures (PCE) inflation data, the Federal Reserve’s preferred inflation measure.

Markets are watching the data closely because stronger-than-expected inflation could reinforce expectations that the Federal Reserve will remain cautious about easing monetary policy. That scenario could support the U.S. dollar and put renewed pressure on EUR/USD.

Conversely, softer-than-expected U.S. inflation could increase expectations for easier Federal Reserve policy and weaken the dollar. Such a reaction could give EUR/USD the momentum required to challenge the 1.1710 resistance zone.

Markets are also looking ahead to the Jackson Hole gathering, where comments from Federal Reserve officials could influence expectations for the next U.S. interest-rate decision.

Euro-Side Considerations

The euro also has its own fundamental support. Recent reports indicate that markets are increasingly watching the European Central Bank’s policy outlook, with inflationary pressure in the euro area remaining an important consideration.

However, the euro’s gains may remain limited if concerns about European economic growth or political developments return to the forefront. This means EUR/USD could remain volatile even if the technical structure continues to favour buyers.

Daily Chart Outlook

Bullish scenario: If EUR/USD continues to hold above 1.1620–1.1650 and buyers successfully break 1.1710 on a daily closing basis, the next upside levels to watch would be around 1.1750 and potentially 1.1800.

Neutral scenario: If the pair remains trapped between approximately 1.1620 and 1.1710, the market may continue consolidating while traders wait for clearer fundamental direction.

Bearish scenario: A decisive daily break below 1.1620 would weaken the current bullish structure. In that case, attention could shift toward 1.1580, with further weakness becoming possible if sellers establish control below that level.

SkyPress Technical View

For the daily timeframe, EUR/USD currently has a cautiously bullish bias rather than a strong bullish signal. The pair is holding above important support, but it has not yet produced the breakout needed to confirm a fresh bullish leg.

The most important level for buyers is 1.1710. A confirmed break and daily close above this resistance would improve the bullish outlook considerably.

On the downside, 1.1620–1.1650 is the key support zone. A sustained move below this area would change the technical picture and increase the risk of a deeper correction.

Conclusion

EUR/USD is currently at an important technical crossroads. The pair has retained a constructive daily structure, but buyers have yet to overcome the 1.1710 resistance barrier.

For traders and investors watching the daily timeframe, the reaction around 1.1620–1.1650 support and 1.1710 resistance will be crucial. A breakout above resistance could open the way toward 1.1750 and 1.1800, while a breakdown below support would warn that the recent bullish recovery is losing momentum.

With U.S. inflation data and Federal Reserve expectations currently driving the dollar, EUR/USD could experience increased volatility. Traders should therefore wait for confirmation rather than treating either direction as guaranteed.

SkyPress view: The daily bias remains cautiously bullish while EUR/USD holds above 1.1620–1.1650, with 1.1710 acting as the major confirmation level for the next potential upward move.

Disclaimer: This analysis is for educational and informational purposes only and should not be considered financial or investment advice. Forex trading involves substantial risk, and past price behaviour does not guarantee future results.