EUR/USD Rally Stalls at 2025 Highs as Traders Lock in Profits

EUR/USD has encountered significant profit-taking pressure near key 2025 highs, causing the recent rally to lose momentum. The pair had been advancing on broad dollar weakness and improving eurozone economic sentiment, but traders are now booking gains at technically significant resistance levels. The pullback suggests the market may be entering a consolidation phase after the strong upward move, with traders reassessing positions ahead of upcoming economic data releases. Technical indicators show the pair remains in an overall uptrend despite the current retracement, with immediate support emerging at previous resistance levels. Market participants are closely monitoring European Central Bank communications and US economic indicators for direction. The profit-taking activity reflects healthy market dynamics rather than a fundamental shift in the bullish EUR/USD narrative, though sustained moves above 2025 highs may require fresh catalysts.