Two weeks ago the EUR/USD hit new lows this year near 1,035. However, buyers have been able to regain control since the price hit new lows.
Furthermore, Lagarde's recent comments have also supported the euro's recovery against the US dollar.
Daily time frame chart.
When we look at the main currency pair on the daily chart, we can see that the bullish momentum has intensified after the price has broken the chart pattern - falling wedge.
EUR/USD, Daily time frame chart. Source: xStation
1 hour time frame chart
However, on the 1-hour chart, we can see that the price is starting to show some signs of exhaustion and we cannot exclude the possibility that we may see a further pullback, at least in the short term, in the pair.
In the case of the RSI, we can see that the indicator is showing signs of being overbought, so there is a risk of having too much short-term long exposure, which could lead to a pullback in the pair.
EUR/USD, 1 hour time frame chart. Source: xStation 5
Source: currency-strength.com
Henrique Tomé, XTB Portugal
🚀 US PPI inflation skyrockets to 6%
Market Wrap: Bulls return to Wall Street (13.05.2026)
BREAKING: Senate gives green light to Warsh. Markets cautious amid concerns
BREAKING: U.S. CPI shows persistent inflation pressure! Dollar Strengthens After Data Release!
The material on this page does not constitute as financial advice and does not take into account your level of understanding, investment objectives, financial situation or any other particular needs.
All the information provided, including opinions, market research, mathematical results and technical analyses published on the website or transmitted to you by other means is provided for information purposes only and should in no event be interpreted as an offer of, or solicitation for, a transaction in any financial instrument, nor should the information provided be construed as advice of legal or fiscal nature.
Any investment decisions you make shall be based exclusively on your level of understanding, investment objectives, financial situation or any other particular needs. Any decision to act on information published on the website or transmitted to you by other means is entirely at your own risk. You are solely responsible for such decisions.
If you are in doubt or are not sure that you understand a particular product, instrument, service, or transaction, you should seek professional or legal advice before trading.
Investing in OTC Derivatives carries a high degree of risk, as they are leveraged based products and often small movements in the market could lead to much larger movements in the value of your investment and this could work against you or for you. Please ensure that you fully understand the risks involved, taking into account your investments objectives and level of experience, before trading, and if necessary, seek independent advice.
