EUR/USD Weekly Price Analysis – Euro Rallies With Ceasefire And Rates

Euro vs US Dollar Weekly Technical Analysis

The Euro has been very bullish this past week, as the ceasefire announcement, of course, sent risk appetite through the ceiling. That being said, we do have to worry about whether or not the ceasefire can actually hold; after all, we’ve already seen some attempts to break it, so this is literally going to rely, I believe, on interest rates and headlines.

For example, the 10-year US yield is sitting right around the 4.30 level; breaking above it typically is positive for the dollar, at least in this environment, and breaking below it is negative. And we have seen rates drop over the last couple of days at the end of the week, and that’s how you ended up with this candlestick.

The 1.18 level above is an area that I think will continue to be a bit of a resistance barrier and perhaps a potential target. If we pull back from here, the 1.17 level followed by the 1.16 level both could offer support. At that point, you should pay attention to the rates in the USA.

Consolidation and Range-Bound Trading

But I think, unfortunately, at the end of the day, we’re still in the same consolidation area that we’ve been in really going back to June or so of 2025. So, with that being the case, I think you have a situation where traders are looking at this through the prism of just range-bound trading; we’re just trying to get back to the top of the range.

Short-term traders will probably focus on pullbacks for potential dip buying as long as there is some type of workable ceasefire. In that environment, markets will continue to look for ‘risk appetite’ and where to express it.

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