2026-02-20 01:43:00
EUR/USD is struggling to extend its downswing as it tests a key support zone!
Is the pair about to bounce and revisit higher inflection points?
Here is what we are seeing on the 4-hour chart.
U.S.-Iran war jitters, mixed mid-tier Euro Area data, and lingering uncertainty around ECB President Lagarde’s tenure have likely kept a lid on euro demand in recent sessions.
Meanwhile, the U.S. dollar has been quietly picking up ground, supported by safe haven flows and upbeat U.S. labor-related data.
But the tides could change soon as the U.S. gears up to release closely watched reports, including core PCE, advance GDP, and personal income and spending. At the same time, both the Euro Area and the U.S. will publish their preliminary business PMI readings, which could set the tone for the next move.
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the euro and the U.S. dollar, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
EUR/USD recently rolled over from the 1.1925 area and is now trading closer to 1.1770.
Keep an eye out for green candlesticks and steady demand around this zone. If buyers step in, it would suggest that the mid-range level and the 200 SMA are doing their job as support. A bounce from here could send EUR/USD back toward the 1.1925 area of interest, and possibly even the 1.2050 highs.
That said, a deeper slide is still possible. If the pair stays below the mid-range levels, sellers may regain control and push EUR/USD toward the 1.1700 psychological handle or even the S3 at 1.1688 near the lower boundary of the ascending channel pattern.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment.
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
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