28 Jan

EUR/USD Updates Four-Year High: Everything Works Against the US Dollar

January 28, 2026

By RoboForex Analytical Department

EUR/USD reached 1.2000 on Wednesday after rising to 1.2082 the previous evening, marking a strong four-day rally. The pressure on the US dollar has intensified following comments from US President Donald Trump. He stated that he was not concerned about the weakening of the dollar, viewing its fall as moderate. The market interpreted this as a signal that the administration might be willing to tolerate a weaker dollar to enhance export competitiveness.

An additional blow to the dollar came from rising political uncertainty in Washington, with Trump making fresh statements about Greenland and continuing to criticise the US Federal Reserve’s independence.

Further compounding the dollar’s decline is growing speculation about a potential joint US-Japan currency intervention to support the yen, which has boosted demand for JPY.

Investors’ focus is on the Federal Reserve’s decision, due later tonight. The Fed is widely expected to maintain its current interest rate, but much attention is on potential signals regarding the timing of future rate cuts. Current expectations suggest two 25-basis-point cuts by the end of the year.

Technical Analysis

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On the H4 chart, EUR/USD has formed an upward wave towards 1.2080. A breakout above this resistance level would signal a continuation of the bullish trend. For now, the pair is in a corrective phase, with support around 1.1935. The correction is confirmed by the MACD indicator, which shows the histogram and signal line above zero and forming a downward wave. After the correction, the upward trend may resume towards 1.2100 and potentially 1.2200, though corrections could occur during the rise.

On the H1 chart, after testing resistance, EUR/USD is forming a correction. A rebound from support at 1.1935 would signal a continuation of the bullish wave. The Stochastic indicator’s signal lines are approaching the 20 level, suggesting that the correction may continue before resuming the upward trend. The next target for growth could be 1.2100.

Conclusion

The EUR/USD pair continues to show bullish momentum, supported by a weaker US dollar and rising geopolitical tensions. The ongoing correction might offer buying opportunities, with further growth likely towards 1.2100 and 1.2200, depending on the Fed’s upcoming decision and global market dynamics.

 

 

Disclaimer

Any forecasts contained herein are based on the author’s particular opinion. This analysis may not be treated as trading advice. RoboForex bears no responsibility for trading results based on trading recommendations and reviews contained herein.


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