In this EURUSD analysis, we decipher the currency pair from technical and fundamental aspects. It also features trend examination, price forecasts, support and resistance levels, and trading signals.

We update this page daily to ensure you have the latest information by covering the price changes.

EURUSD Live Chart

EURUSD Analysis: Fundamental View

Bloomberg—The EURUSD currency pair resumed its bullish trend, surpassing $1.06 for the first time in nearly four months. This increase comes as investors anticipate that higher defense spending and additional borrowing in Europe will help boost the struggling Eurozone economy.

As of this writing, EUR/USD is overbought, signaled by the Stochastic oscillator. This means the price might step into a consolidation phase or decline toward lower support levels.

Germany Plans to Ease Borrowing Limits for Defense and Growth

The CDU/CSU alliance and the SPD, which won the recent election, have agreed to ease strict borrowing limits in Germany. Their goal is to increase defense spending beyond 1% of GDP.

They also plan to set up a €500 billion off-budget fund to finance infrastructure projects over the next decade.

Ursula von der Leyen Unveils €800 Billion Defense Plan

The European Commission President Ursula von der Leyen revealed new EU initiatives to strengthen Europe’s defense industry, which could unlock up to €800 billion.

She also proposed allowing member states more financial flexibility for defense investments and suggested €150 billion in loans to support these efforts.

On the monetary side, the European Central Bank is widely expected to cut interest rates for the fifth time this week.