EUR/USD steadied after a small dip tied to US jobs data. It entered Thursday’s North American session slightly higher. Analysts said the price action looked more stable.
Yield spreads kept recovering and moved back toward the multi-year highs seen in late December and early January. Correlations with spreads also improved, suggesting a return to more fundamental drivers.
The broader technical trend has stayed bullish since February 2025. Recent gains paused above 1.19, around 1.1920.
Resistance sits just above 1.19, with little additional resistance until 1.20. Near-term trading was expected to remain in a 1.1850 to 1.1950 range.
The article noted it was produced with the help of an artificial intelligence tool and reviewed by an editor.
The euro looks to be stabilising, and the overall technical picture remains bullish. The uptrend that began in February 2025 is still in place, which points to further strength against the US dollar. The next key target is the psychologically important 1.20 level.
On the fundamental side, the move is supported by recovering yield spreads between German and US bonds. These spreads are moving back toward multi-year highs. For example, the German-US 10-year spread has narrowed to about -125 basis points, its tightest level since early 2025. This may signal that capital flows will increasingly favour the euro, as Eurozone inflation came in at 2.5% last month, adding pressure on the ECB.
For derivatives traders, this view supports buying call options with a 1.20 strike that expire in the coming weeks, such as March or April 2026. This approach offers upside exposure if EUR/USD pushes above the current resistance area near 1.1920. The recent small pullback after last week’s strong US jobs report (220k) is being treated as a buying opportunity.
Traders who are only moderately bullish could instead consider selling put options. Selling a March 2026 put with a strike near the 1.1850 support area could generate premium. This strategy benefits if EUR/USD stays above that level, which fits with the view that the broader trend remains strong.
Over the past year, bullish sentiment has been building as the euro has climbed steadily since early 2025. The recent pause just above 1.19 may be temporary, as the market consolidates before another move higher. There is little meaningful technical resistance before 1.20, a level EUR/USD has not held consistently since late 2024.
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