The EURUSD is pushing higher on the back of a more hawkish/less dovish tilt from ECB President Lagarde and a drop in U.S. yields, with the 10-year falling below 4% for the first time since April 7. Lagarde commented that the disinflationary process is over and that trade uncertainty has diminished.
On the technical front, the pair has moved back above the 100-hour moving average at 1.1722. The first test of that level earlier in the session drew sellers (see earlier post), but the pullback was shallow. Momentum then built as Lagarde’s comments combined with the slide in yields gave buyers the upper hand.
The price is now testing a key resistance zone between 1.1730 and 1.1742, the ceiling from August. The latest push briefly stretched to 1.17435, nudging above the top of that area. A sustained break above will shift focus to the Tuesday high near 1.1779, followed by the July 24 peak at 1.1788, and then the July 1 high at 1.18292—the highest level since September 2021 (see daily chart below).
For now, traders will be watching whether the pair can hold above the 1.1730–1.1742 zone to confirm a bullish breakout.
