EUR/USD Price Forecast: Gathers strength above 1.1550, bullish outlook remains intact
The EUR/USD pair has seen a consolidation above the 1.1550 level, suggesting that the recent bullish momentum remains intact. This strength above a key technical level is significant, as it points to a potential continuation towards the next psychological barrier at 1.1600. Market sentiment continues to favor the euro, which aligns with the positive outlook reflected in various forecasts. With the current spot at 1.1446, traders are closely monitoring any break above 1.1550, which could attract further buying interest.
Where it sits in our coverage
Our consensus EUR/USD target currently sits at 1.1600 (median across 11 firms), indicating a broadly bullish outlook, with firms like Morgan Stanley and JPMorgan setting higher targets around 1.2000. Conversely, UOB's forecast is more muted at 1.1536, suggesting a more varied sentiment across firms.
How firms align
Firms such as Deutsche Bank and JPMorgan reflect an optimistic stance going forward, with targets of 1.1800 and 1.2000 respectively. This aligns with the bullish sentiment noted in the fxstreet.com article, which suggests that market conditions could support upward movement toward these levels in the near term. Meanwhile, TMGM and Investec appear more conservative with targets around 1.1450 and 1.1455.
What the data shows
Recent revisions from notable firms like Deutsche Bank also suggest a bullish trajectory for EUR/USD, with targets revised upwards to 1.1800. This trend is echoed in our previous insights, such as /research/eurusd-ecb-rate-path-2026-08-18, where we noted a median target of 1.16 against a spot price of 1.1575.
How firms align with this view
Aligned with the headline view
Contrary positioning
Key takeaways
- 01EUR/USD is consolidating above 1.1550, hinting at further gains.
- 02A movement above 1.1600 could signal a shift in trader sentiment.
- 03Watch for key economic data, particularly from the ECB, which may influence EUR movements.
- 04Market consensus is shifting positively, showing a growing confidence in EUR strength.
Market implications
Looking ahead, traders should watch for any breaks above 1.1600 as this could trigger additional bullish positioning. Significant ECB events or data releases could further impact market sentiment and drive the EUR/USD toward our consensus target of 1.1600.
Risks to this view
A reversal in sentiment could be prompted by stronger-than-expected U.S. economic data or a more hawkish tone from the Federal Reserve, which would undermine the current bullish outlook for the EUR against the USD.
Sentiment by currency
USD EUR+JPY~GBP~Composite USD score: -0.40
Sources & References
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