Euro Breakout Against The Dollar Holds, More Upside Likely

The EUR/USD continues to stay strong, with eyes on 1.22. Per the image above, note the descending white trend line going back to 2008. This trend line marks the major pivot highs on the EUR/USD until the recent breakout in April 2025.

To simplify, the Euro has generally been weakening against the U.S. Dollar since 2009. However, that has now changed. The breakout of the EUR/USD means that the Euro is likely to be the currency that slowly takes market share from the U.S. Dollar.

Near-term, the EUR/USD will have resistance at 1.22. However, longer-term, this may mean the Euro continues to strengthen against the Dollar. This brings up the potential for a pivot toward a slow trend of de-Dollarization beginning as other countries diversify away from the U.S. Dollar.