EUR/USD Price Forecast: Keeps bullish vibe, first upside barrier emerges above 1.1800

• EUR/USD gains traction to near 1.1755 in Friday’s early European session. 

• The major pair keeps the bullish vibe above the key 100-day EMA, with upward RSI momentum. 

• The first upside barrier to watch is 1.1820; the initial support level emerges at 1.1655.

The EUR/USD pair trades in positive territory around 1.1755 during the early European trading hours on Friday. The European Central Bank (ECB) kept rates unchanged at its December policy meeting, and its outlook suggested less urgency for further cuts, which has provided some support to the Euro (EUR) against the US Dollar (USD). 

ECB President Christine Lagarde emphasized a data-dependent, "meeting-by-meeting" approach. She further stated that the central bank is not pre-committing to any future rate path, though some economists anticipate the rates to remain steady through 2026.

On the USD’s front, anticipation that US President Donald Trump will name a dovish successor to Fed Chair Jerome Powell, whose term ends in May, could drag the Greenback lower and create a tailwind for the major pair. Trump said that he expects the next Fed Chairman to keep interest rates low and never “disagree” with him. The comments are likely to heighten worries among investors and policymakers about Fed independence.

Technical Analysis:

In the daily chart, EUR/USD trades at 1.1755. The 100-day EMA slopes higher at 1.1635, and price holds above it, preserving the medium-term bullish bias. RSI rises to 59.8, confirming improving momentum without overbought conditions. Holding above the EMA would keep the upside path intact.

Price sits above the Bollinger middle band at 1.1738, while the bands narrow, signaling reduced volatility after the recent recovery. The upper band at 1.1820 caps the topside for now, and a daily close above it could extend gains; a drop back under the middle band would expose the lower band near 1.1655. Overall, momentum and trend signals favor buying dips until volatility expands.

(The technical analysis of this story was written with the help of an AI tool)