EUR/USD Breaks Key Resistance, 1.20 Target Comes Into Focus

EUR/USD Breaks Key Resistance, 1.20 Target Comes Into Focus

EUR/USD has broken above the stubborn 1.170 resistance, a level often associated with long-Euro option strikes, prompting renewed speculation that the pair could soon target the psychologically significant 1.20 level.

Euro Gains Momentum, But It's Still a USD Story

While the Euro received minor support from NATO's reaffirmation of the 5% defense spending goal and Trump’s relatively conciliatory tone toward most allies, the EUR/USD rally continues to be mostly about broad US Dollar weakness.

“The Eurozone’s calendar remains light today, with ECB members Schnabel and Guindos scheduled to speak,” one strategist noted. “However, their impact on monetary policy signals may be limited.”

Technical Picture: 1.20 in Sight?

After consolidating around 1.163, EUR/USD struggled to pierce 1.170, which acted as a strong resistance zone. With the breakout above that level now confirmed, traders are watching for momentum to carry the pair toward 1.18 and eventually 1.20.

Key Levels:

• Support: 1.1700, 1.1630
• Resistance: 1.1800, 1.1980, 1.2000

What to Watch Next

With EUR/USD breaking higher:

• Watch for follow-through buying toward 1.18+
• Monitor comments from ECB officials Schnabel and Guindos
• US Dollar dynamics remain in control — especially interest rate bets and Fed political risk

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