Yesterday, the EUR/USD exchange rate rose above the 1.1700 level for the first time this year. The last time one euro was worth more than 1.70 US dollars was in autumn 2021.

The main driver behind the euro’s rise is the weakening dollar, largely due to decisions made by the Trump administration. This week alone, the EUR/USD pair has gained more than 2%, partly as a result of escalating tensions between the US President and the Chair of the Federal Reserve.

According to Reuters, Trump called Powell “terrible” and said he had three or four candidates in mind for the top job at the Fed. It was also reported that Trump had considered selecting and announcing a replacement for Powell by September or October (his current term officially runs until May 2026).

Technical Analysis of the EUR/USD Chart

Price movements are forming an upward channel (highlighted in blue), with the following observations:
→ Midweek, the price consolidated around the channel’s median line (as indicated by arrow 1);
→ It then broke through the 1.6300 level with strong bullish momentum (shown by arrow 2), a level that had acted as resistance earlier in the month;
→ The long upper wicks on the candles forming yesterday’s highs (circled) suggest increased selling pressure near the upper boundary of the channel.

Given this, we could assume that in the short term, the price might form a new consolidation zone around the median line above the 1.6300 level. Significant fundamental catalysts would be required to break the developing upward trend.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips (additional fees may apply). Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.