EUR/USD Outlook: Key Levels for 2026

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EUR/USD Outlook: Key Levels for 2026Euro/US DollarFX:EURUSDbartarciwThe EUR/USD pair has entered 2026 with heightened volatility as traders anticipate further policy moves from the Federal Reserve and the European Central Bank. Recent price action shows strong resistance around 1.1200 and support near 1.0850, creating a tight trading range. Technical indicators suggest that momentum is weakening, with RSI hovering near neutral levels and MACD showing early signs of divergence. A breakout above 1.1200 could open the path toward 1.1350, while a breakdown below 1.0850 may trigger a deeper correction toward 1.0700. Beyond technicals, macroeconomic fundamentals remain critical. Inflationary pressures in the U.S. and energy challenges in Europe continue to shape sentiment. Traders should closely monitor upcoming economic data releases, including U.S. Non-Farm Payrolls and Eurozone CPI. For traders in the Middle East seeking localized insights and educational resources, platforms like ParsPip provide valuable analysis that connects global macroeconomic trends with regional realities. In conclusion, EUR/USD remains at a pivotal point. A disciplined approach combining technical analysis with macroeconomic awareness will be essential for navigating the evolving forex landscape in 2026.