EUR/USD breaks above descending channel on Trump-Greenland tensions

EUR/USD has surged 0.6% to 1.0935, breaking decisively above its late-2025 descending channel as geopolitical uncertainties surrounding Trump's Greenland comments weigh on dollar sentiment. The pair's technical breakout marks a significant shift from the bearish trend that dominated year-end trading. Market participants are pricing in increased political risk premium, with the euro finding support from reduced US policy clarity. The breakout above the channel resistance at 1.0910 opens the path toward 1.0980, the next major resistance level. Volume has increased 40% above the 20-day average, confirming strong momentum behind the move. RSI indicators have crossed into bullish territory at 58, while MACD shows positive divergence. Traders should watch for a potential retest of the broken channel line near 1.0900 as new support. Further upside momentum could accelerate if the pair sustains above 1.0950 in the coming sessions.