EUR/USD Targets 1.20 as ECB Hawkishness and Dollar Weakness Converge

EUR/USD remains on an upward trajectory with analysts projecting a potential move toward the 1.20 level, driven by a confluence of hawkish European Central Bank signaling and broader US dollar softening. The ECB's commitment to combating inflation — exacerbated by surging energy prices linked to the Iran conflict and Strait of Hormuz risks — is supporting elevated rate expectations in the eurozone. Simultaneously, fading US rate cut bets have not been sufficient to sustain dollar strength, as hawkish pivots from multiple global central banks dilute the greenback's yield advantage. The 1.20 target represents a significant psychological and technical milestone that would mark a notable euro recovery. Key resistance levels on the path to 1.20 will need to be cleared with conviction, supported by sustained fundamental drivers. Traders should watch upcoming ECB policy meetings and US economic data releases for catalysts that could either accelerate or stall this projected move. Risk remains tilted to the upside as long as the ECB maintains its hawkish bias.