EUR/USD climbed to about 1.1635 during Wednesday’s Asian session, buoyed by signs that the ECB has completed its rate-cutting cycle. Last week, ECB President Christine Lagarde remarked that borrowing costs are now “at the right level.” According to Bloomberg, markets expect the ECB to hold its deposit rate at 2.0% again this month, with most analysts forecasting no further cuts through 2026. Later today, traders will be watching the US ADP Employment Change and ISM Services PMI reports for fresh insights into the health of the US labor market and broader economy.
On the daily chart, EUR/USD is trading around 1.1635, comfortably above its 100-day EMA at 1.1578, which is tilting upward and reinforcing the recovery bias. The Bollinger Bands have contracted, and price sits just below the upper band near 1.1652, signaling sustained bullish pressure amid lower volatility. Immediate resistance is at the upper band (1.1652), while the mid-band around 1.1580 now offers the first support.
The RSI stands at 58.9, firmly above its 50 midpoint and confirming growing upside momentum. A daily close above 1.1652 would likely trigger a Bollinger Band expansion and extend the rally, whereas failure to clear that level could pull the pair back toward the lower band around 1.1507. As long as EUR/USD holds above the 100-EMA, the overall bias remains bullish, and any pullbacks should attract buyers near the mid-band.
