Daily Technical Analysis EUR/USD: Is an Upward Breakout Imminent?

The EUR/USD pair rose by 0.5% on Tuesday, surpassing the 1.0500 mark as it faced a key technical hurdle for the eighth consecutive session. Meanwhile, US consumer sentiment fell in February, raising concerns about a potential economic slowdown. Compounding market worries, former President Donald Trump reiterated his plans to impose steep import tariffs on American consumers, escalating trade war risks with the US’s closest partners.

Despite the drop in consumer sentiment—largely driven by uncertainty over Trump’s tariff policies—the British pound (GBP/USD) remained resilient on Tuesday. Positive market sentiment continues as there are indications that Trump might postpone his tariff plans, potentially easing trade-related volatility.

Upcoming events include Thursday’s publication of US Gross Domestic Product data, which is expected to draw significant attention. The week will conclude with Friday’s US Personal Consumption Expenditure (PCE) inflation report, closely monitored by investors to determine whether the recent surge in headline Consumer Price Index (CPI) inflation is affecting core inflation figures.

EUR/USD Daily Technical Analysis for February 26th

EUR/USD is holding just above the 50-day Exponential Moving Average (EMA) near 1.0440, though bullish momentum remains constrained. The pair has yet to reclaim the 1.0550 level but is still trading well above mid-January’s swing low near 1.0200.

Even if buyers push the pair beyond 1.0550, the descending 200-day EMA near 1.0650 presents a formidable technical resistance level, potentially capping further upside gains.