EUR/USD breaks above 1.1800 reaching highest levels since early July

EUR/USD surged 0.5% to 1.1814 on Monday, breaching the psychologically important 1.1800 level for the first time since early July. The pair's strength reflects broad-based dollar weakness as traders reassess Federal Reserve rate expectations ahead of upcoming policy decisions. The break above 1.1800 confirms a bullish technical setup, with the pair clearing multiple resistance levels that had capped gains for several months. Momentum indicators suggest further upside potential, with the next major resistance at July's peak near 1.1850. The move aligns with shifting market sentiment favoring the euro amid improving European economic fundamentals and questions about US monetary policy direction. Traders are now eyeing the 1.1850-1.1900 zone as the next upside target, while support has formed at the former resistance of 1.1800. A sustained break above current levels could signal a longer-term trend reversal in favor of the euro.