The EURUSD is on the rise, moving above the 50% retracement level from the July 1 high of 1.16098. It has also cleared the swing area top at 1.16309, reaching a session high of 1.1643. The next goal is the 61.8% retracement at 1.1661, which was a resistance point from July 10 to 15. For those aiming to continue this trend, the 50% retracement at 1.16098 serves as a risk level that can support more upward movement. If the price drops below this point, it could signal that the rally might be over. The upward trend has been active for four days since it came close to the 100-day moving average.

Testing Swing Areas

The price rose above a swing area between 1.1518 and 1.15295, which had been tested during yesterday’s low before the climb began again. Buyers are pushing forward, using technical levels to keep the upward trend alive. The EURUSD is building on its recent gains after breaking above the crucial 1.16098 level. Currently, buyers are in charge, aiming for the next resistance around 1.1661. This area proved to be a challenge for the pair in mid-July. This rise is backed by recent positive news from the Eurozone. The flash inflation estimate for July 2025 came in at 2.4%, exceeding expectations and putting pressure on the European Central Bank to hold off on cutting interest rates. Traders are now expecting a tougher stance, which supports the Euro. Conversely, the US dollar is showing weaknesses. Last Friday’s Non-Farm Payrolls report for July 2025 revealed only 155,000 jobs added—far below what was expected. This suggests that the US labor market is slowing down more quickly than the Federal Reserve had thought.

Strategies and Patterns

With this positive outlook, traders might think about buying call options with strike prices above the current rate, possibly aiming for the 1.1700 level. The key support at 1.16098 makes selling put options an appealing strategy for those willing to take on more risk for extra income. This level will act as a strong reference point for such trades. We’ve seen a similar pattern where buyers stepped in after a dip back in late 2024, sparking a solid rally. The bounce off the 100-day moving average last week signaled that the uptrend continues. For the weeks ahead, staying above 1.16098 is crucial for keeping this optimistic outlook. Create your live VT Markets account and start trading now.

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