The EUR/USD pair remains under pressure, struggling to break past the 1.0440 resistance level as bearish sentiment dominates the market. A strong US dollar, supported by firm Treasury yields and cautious Federal Reserve policy signals, has kept the euro on the defensive despite attempts at recovery.
Investors continue to favor the greenback amid persistent economic uncertainty, with traders closely watching upcoming US data for further confirmation of the Fed’s higher-for-longer stance. Robust employment figures and sticky inflation have reinforced expectations that rate cuts may not come as soon as markets had hoped, keeping the dollar well-supported.
EUR/USD 1-D Chart as of February 20th, 2025 (Source: TradingView)
Meanwhile, the Eurozone’s economic outlook remains fragile, limiting demand for the euro. Recent data has pointed to slowing business activity, and with the European Central Bank (ECB) maintaining a cautious tone, investors see little reason for a strong rebound in the common currency. Without a clear shift in economic conditions, the euro may remain trapped under key resistance levels.
Technical indicators suggest that sellers will retain control as long as the pair stays below 1.0440, a level that has repeatedly acted as a ceiling in recent sessions. A failure to break higher could open the door for further downside, with 1.0400 and lower levels coming into focus if bearish momentum accelerates.
Global risk sentiment is also playing a role, as geopolitical uncertainties and market volatility keep traders positioned defensively. Any fresh developments in global economic conditions or central bank rhetoric could trigger sharp moves, making the euro’s near-term trajectory highly data-dependent.
For now, EUR/USD remains stuck in a tight range, with sellers maintaining control while resistance holds firm. Traders will be closely watching macroeconomic catalysts to determine whether the euro can stage a recovery or if further declines are on the horizon.
