EURUSD: the pair failed to breach the 1.0450 resistance level

The EURUSD pair is undergoing an upward correction after forming a local low. The bulls were unable to surpass the 1.0450 resistance level immediately. Find out more in our analysis for 23 January 2025.

EURUSD forecast: key trading points

• Donald Trump has not yet imposed new trade tariffs on the European Union
• Current trend: upward correction
• EURUSD forecast for 23 January 2025: 1.0450 and 1.0350

Fundamental analysis

The EURUSD rate strengthened, rising to a five-week high of 1.0450, following news that US President Donald Trump held off on imposing stricter trade tariffs on the European Union. Nevertheless, concerns remain about potential near-term restrictions from the US.

In her speech, ECB President Christine Lagarde urged Europe to prepare for possible US trade sanctions. Regarding monetary policy, the ECB is expected to continue easing by reducing the benchmark interest rate by 25 basis points next week.

EURUSD technical analysis

On the H4 chart, the EURUSD pair is undergoing an upward correction after forming a local trough in the 1.0177-1.0200 support area. The Alligator indicator positioned below the price chart is moving upwards, confirming local growth. Yesterday, the bulls attempted to breach the 1.0450 resistance level but encountered intense seller pressure, leading to a pullback. The price is now consolidating around 1.0400.

Today’s EURUSD forecast suggests the pair may continue its upward correction, targeting the 1.0600 resistance level if the bulls surpass the 1.0450 resistance level. Conversely, if the bears hold firm at 1.0450, the price could retreat to the 1.0350 support level

Summary

The EURUSD pair failed to surpass the 1.0450 resistance level on its initial attempt during the upward correction. Given the prevailing upward momentum, further attempts by the bulls to breach this resistance level appear likely.