## EUR/USD continues to move higher amid dollar weakness and divergence in central bank policies

The latest movement of the EUR/USD currency pair reflects a clear upward trend, rising by 0.10% during Tuesday’s Asian session. The overall market shows that the euro’s strength is creating a positive momentum, with the office at 1.1710. The price is rotating around the 1.1735 range, which is a key equilibrium point in trading. The pair has pushed itself up from a low of approximately four weeks ago at 1.1660 before establishing a solid recovery in recent days.

### The US dollar lost momentum, while the euro and pound received support

The US dollar has declined for the second consecutive day, retreating from its peak recorded on December 10. The main reason is the expectation that the US may halt interest rate hikes or even start easing pressure. Changes in the Federal Reserve’s monetary policy (Fed) have caused the currency pair to weaken. Meanwhile, the European Central Bank (ECB) remains cautious about further interest rate cuts. This set of principles has strengthened the EUR/USD and sought the pound to follow positive cues.

### The overall range around 1.1735 sets a clear boundary

The 1.1735 level is a key consolidation point, comprising multiple layers of resistance and support. The 100-hour moving average (SMA 100-Hour) converges at this level. At the same time, the 50% Fibonacci retracement from the pair’s decline (from 1.1808 to 1.1660) also aligns at this point. The ability of the price to break through this area indicates a stable upward move. The technical indicators of the mixed movement (MACD) have shifted into positive territory and are gaining strength. This tracking signal suggests that the upward momentum is gradually strengthening. The relative strength index (RSI), standing at 59, remains in the zone indicating room for further price increases.

### Next targets and critical points

If the upward momentum continues, the price will be guided toward the 61.8% Fibonacci retracement level, located in the 1.1700s. A break away from the equilibrium point at 1.1735 and a breach of the 61.8% resistance would signal preparation for larger push-ups. Conversely, if buying pressure is insufficient, a contraction may occur for the second time, causing the EUR/USD to fall into a price consolidation pattern, similar to recent oscillations within a high-low range.