EUR/USD targets 1.20+ through 2026 on dollar weakness outlook

EUR/USD bullish momentum is expected to push the pair above 1.20 through 2026, according to the latest monthly FX update analysis. While specific current levels weren't mentioned, the forecast suggests significant upside potential from current trading ranges. The projection implies approximately 10-15% appreciation from typical 2024 levels, driven by expectations of Federal Reserve policy shifts and potential dollar weakness. Long-term structural factors supporting euro strength include improving Eurozone economic fundamentals and reduced energy crisis concerns. The analysis points to a multi-year trend reversal favoring the euro, though near-term volatility remains possible. Technical projections suggest initial resistance at psychological levels around 1.15 and 1.18 before challenging the 1.20 target. Traders should consider the extended timeframe of this forecast when positioning, as shorter-term corrections within the broader uptrend are likely.