# European Currency Rallies to Three Month Peak with Targets Set at 1.1725 as Dollar Softens > Following a 0.89 percent rally to a three month peak, the Euro maintains an upside bias toward 1.1725, backed by technical momentum and shifting US Treasury buyback dynamics. **Type:** article · **Category:** Market · **Published:** 2026-08-20 · **Source:** TrendKia **Canonical:** https://trendkia.com/en/market/us-dollar-men-narami-se-3-mahine-ke-uchchatama-stara-para-pahuncha-euro-1-1725-ke-stara-ka-lakshya-18944 · **Language:** English **Tags:** EUR/USD, Forex Market, US Treasury, UOB Analysis, Gold Price, Crypto Market Foreign exchange markets witnessed a major bullish breakout in the Euro during recent sessions, as momentum lifted the shared currency to its highest valuation in three months. The strong rally was triggered against a backdrop of broader foreign exchange fluctuations, driven primarily by a weakening Greenback following liquidity policy shifts by the United States Department of the Treasury. Financial analysts at United Overseas Bank, known as UOB, have highlighted that while overbought technical indicators suggest potential short term consolidation, the broader upward trend remains firmly intact with a clear path pointing toward higher resistance targets near 1.1725. ## Technical Outlook for EUR/USD and Key Support Levels According to the latest daily market analysis from UOB, the Euro recorded a sharp gains of 0.89 percent in the prior trading session, establishing a three month high settlement at 1.1677. In their twenty four hour view, market experts noted that while such a rapid price movement has left intraday chart indicators in deeply overbought territory, the sheer force of the upward momentum indicates potential for the rally to extend further. However, analysts cautioned that near term advances may encounter resistance, expecting price action to remain bound within a tighter range between 1.1635 and 1.1700. A sustained breakout above the psychological 1.1700 resistance ceiling is considered unlikely within a single day timeframe. Taking a broader perspective over a one to three week horizon, UOB analysts initially shifted to a positive stance on Monday, 17 August, when the spot rate traded at 1.1570, noting that price behavior indicated a strong upside bias. By Tuesday, 18 August, with spot prices at 1.1580, analysts refined their projections, emphasizing that the currency needed to break and hold above the 1.1615 barrier before initiating a sustained advance toward 1.1655 and higher levels. That breakout materialized decisively as the Euro surged past 1.1615 to hit an intraday peak of 1.1679 before closing at 1.1677. With momentum continuing to build, chart patterns point toward 1.1725 as the next logical upside target. UOB confirmed that its bullish outlook for the Euro remains valid as long as spot prices hold above 1.1600, which has now been designated as strong support, raised from its previous floor of 1.1525. During European trading on Thursday, EUR/USD entered a bullish consolidation phase directly beneath the 1.1700 threshold. The currency touched its highest level since late May before buyers paused to assess macroeconomic developments. Traders and institutional investors are currently waiting for a confirmed breakout beyond 1.1700 before opening fresh long positions, particularly as the US Dollar finds temporary stability following its recent steep decline. ## US Treasury Buyback Expansion and Dollar Weakness The primary catalyst behind the broad softening of the US Dollar stems from an unexpected policy announcement from the US Treasury Department. Stepping off its traditional calendar schedule at 12:32 GMT on Wednesday, the department revealed plans to significantly expand its liquidity support buyback operations. Under the updated framework, the Treasury will at least double the maximum operation size for bond purchases in the 10-year to 20-year and 20-year to 30-year maturity sectors. The purchase limit per operation will increase from $2 billion to at least $4 billion. This enhanced liquidity buyback program is scheduled to take effect on September 9 and will run through November 4. The aggressive expansion in Treasury bond buybacks injected substantial liquidity into fixed income channels, sending US Treasury yields lower and triggering a selloff in the US Dollar. As currency markets absorb the implications of this structural intervention, dollar sellers have taken a temporary breather, allowing the Greenback to consolidate across major trading pairs. Market participants are now turning their attention toward upcoming macro economic releases, including US Jobless Claims data, alongside ongoing geopolitical developments in the Middle East for further market direction. ## GBP/USD Performance and European Currency Trends Alongside the Euro, other major European currencies have navigated broader dollar adjustments. The British Pound, trading in the GBP/USD pair, maintained a steady range around the 1.3600 mark during European trading hours on Thursday. The pair held its retreat from the previous peak, which represented its highest exchange rate since May 11. Much like their counterparts in the Euro pairs, sellers of the US Dollar trading against the British Pound paused their activity while evaluating the full scope of the Treasury's buyback operation. Market participants trading GBP/USD are maintaining a cautious stance, keeping a close eye on upcoming economic metrics from Washington, including weekly unemployment claims, while monitoring headlines regarding tension surrounding Iran and the wider Middle East region. ## Gold Market Adjustments and FOMC Policy Minutes In precious metals, gold experienced modest intraday pullbacks throughout the Asian trading session on Thursday, holding below the $4,500 mark. Despite the slight downward pressure, bullion remained within striking distance of its highest price since early June, which was recorded earlier in the session. The precious metal faced headwinds as the US Dollar stabilized following a sharp drop to three month lows, a move influenced by hawkish tones revealed in the latest Federal Open Market Committee meeting minutes. The hawkish signals from the FOMC minutes prompted some bullish investors to lock in profits, placing downward pressure on gold prices. However, the broader decline in US Treasury bond yields, driven by the expanding Treasury buyback initiative, helped cushion the fall and limit further downside potential. Continued geopolitical uncertainty in the Middle East also provided underlying support to gold's status as a safe haven asset. ## Altcoin Recovery and Crypto Technical Outlook The cryptocurrency market also experienced positive spillover effects from the Treasury buyback announcement and the resulting dollar weakness. Top altcoins, including Ripple (XRP), Solana (SOL), and Cardano (ADA), held firm on Thursday following a strong bullish rebound across digital asset markets. Improved market liquidity expectations encouraged buyers across major cryptocurrency tokens. Technical chart configurations for Ripple and Solana suggest potential for further upside movement in the coming sessions. Ripple traded near $1.0951 on Thursday, building on a robust 10 percent price surge recorded on the previous day. In contrast, while Solana demonstrates resilient upward momentum, technical patterns for Cardano suggest a more vulnerable setup, with ADA facing risks of unwinding its recent gains if broader market buying subsides. ## What this means for you **For Forex Traders and Investors:** Shifting dynamics in the US Dollar and Treasury buyback operations are creating strategic volatility across major currency pairs. **For Gold and Crypto Investors:** Movements in Treasury yields and global risk sentiment continue to influence near-term price action in bullion and altcoins. ## Questions & Answers ### 1. What is the immediate upside target for the EUR/USD currency pair? According to UOB analysis, the next upside target for the Euro is 1.1725, supported by a revised price floor at 1.1600. ### 2. What are the key terms of the US Treasury bond buyback expansion? The US Treasury will double liquidity support buybacks in 10 to 20 year and 20 to 30 year sectors from $2 billion to at least $4 billion per operation between September 9 and November 4. ### 3. How did stabilization in the US Dollar affect gold prices? Gold retraced below the $4,500 mark as the US Dollar stabilized following hawkish FOMC minutes, though falling Treasury bond yields capped further losses. ### 4. What was the market movement for Ripple (XRP) during this period? Ripple posted a 10% surge to trade near $1.0951, with altcoins like Solana and Cardano also holding steady amid broader market recovery. --- _TrendKia — Har trend, sabse pehle.. Machine-readable view; canonical HTML at the URL above._