EURUSD Analysis: Europe increases spending

EURUSD Key Takeaways

• Germany increases spending: Germany’s historic plan to increase spending shocked European markets on Wednesday, pushing European stocks to outperform US stocks, bringing the euro back from the brink of parity with the US dollar and giving German government bonds their worst day since 1990.
• Germany’s new strategy: Germany’s new strategy will free up hundreds of billions of euros for transportation, energy and housing, a dramatic shift that subverts Germany’s control over government borrowing. It is reminiscent of former ECB President Draghi’s 2012 speech to save the euro “at all costs”, which became an abbreviation for policy determination at the time.

Technical Analysis of EURUSD Daily and Hourly ChartsEURUSD Daily Chart Insights

(EURUSD Daily Price Chart, Source: Ultima Markets MT4)

• Stochastic oscillator: The indicator once again sends a bullish signal above the 50 median line, suggesting that the short-term bullish force is strong. The slow line is not close to the overbought area at present, and the exchange rate is still expected to continue to rise.
• Elliott Wave: After the EUR/USD accelerated to break through the upward channel line and the green 200-day moving average, the exchange rate clearly entered the 3rd wave of the wave theory. The strong trend is expected to push the euro to around 1.1402, which is the Fibonacci 2.618 extension level.

EURUSD H1 Chart Analysis

(EURUSD H1 Price Chart, Source: Ultima Markets MT4)

• Stochastic oscillator: Upward trend line: The slope of the upward trend line of EUR/USD continues to increase, which clarifies the accelerated rise of the exchange rate. Once the exchange rate falls below the short-term or faces adjustment
• Moving average support: The current bullish trend is strong, and the purple 13-period moving average becomes the “touchstone” of whether the short-term trend is over. Until the exchange rate falls below this moving average, the trend will always be bullish.

Pivot Indicator Insights for EURUSD

 (EURUSD M30 Price Chart, Source: Ultima Markets APP)

• According to Pivot Indicator in Ultima Markets APP, the central price of the day is established at 1.0720,
• Bullish Scenario: Bullish sentiment prevails above 1.0720, first target 1.0870, second target 1.0910;
• Bearish Outlook: In a bearish scenario below 1.0720, first target 1.0675, second target 1.0630.

How to Navigate the Forex Market with Ultima Markets

To navigate the complex world of trading successfully, it’s imperative to stay informed and make data-driven decisions. Ultima Markets remains dedicated to providing you with valuable insights to empower your financial journey.

For personalized guidance tailored to your specific financial situation, please do not hesitate to contact Ultima Markets.

Join Ultima Markets today and access a comprehensive trading ecosystem equipped with the tools and knowledge needed to thrive in the financial markets.

Stay tuned for more updates and analyses from our team of experts at Ultima Markets.

Learn more: https://bit.ly/4gWTyEA 

—–

Legal Documents

Ultima Markets, a trading name of Ultima Markets Ltd, is authorized and regulated by the Financial Services Commission “FSC” of Mauritius as an Investment Dealer (Full-Service Dealer, excluding Underwriting) (license No. GB 23201593). The registered office address: 2nd Floor, The Catalyst, 40 Silicon Avenue, Ebene Cybercity, 72201, Mauritius.

Copyright © 2025 Ultima Markets Ltd. All rights reserved.

Disclaimer  

Comments, news, research, analysis, price, and all information contained in the article only serve as general information for readers and do not suggest any advice. Ultima Markets has taken reasonable measures to provide up-to-date information, but cannot guarantee accuracy, and may modify without notice. Ultima Markets will not be responsible for any loss incurred due to the application of the information provided.