EUR/USD UPDATE
Since the onset of the Asian session, the pair has been gaining upward momentum, inching closer to the critical resistance at 1.1200. This psychological level exerts significant influence on the market, and breaking through it is likely to present a considerable challenge on the first attempt. Historically, such levels often act as formidable barriers, requiring sustained buying pressure to be overcome.
On the H4 and H1 timeframes, early signs of a rebound are beginning to take shape, suggesting that the market may be due for a pullback before another leg higher. On the D1 chart, a broader trading range between 1.1200 and 1.1050 is emerging, with the price showing potential to exit a descending wedge pattern—a bullish technical signal often associated with trend reversals. However, despite this positive setup, the current strong distribution around 1.1200 suggests that the market lacks the immediate strength to breach this key resistance zone.
In the short to mid-term, I expect the price to retreat slightly or consolidate within a narrower range between 1.1200 and 1.1140, possibly extending to 1.1110. Once this consolidation phase stabilizes, the pair may mount a renewed attempt to retest the upper boundary of the range. Should this occur, a successful breakout above 1.1200 would open the door for further bullish expansion, with potential upside targets around 1.1270 and 1.1350.
Key resistance remains at 1.1200, while support zones are found at 1.1140 and 1.1110. Above 1.1200, there is a significant pool of liquidity, which could act as a magnet for market participants. This dense liquidity zone may not be easily overcome, requiring multiple tests before buyers can decisively push through.
In conclusion, the market appears poised for a brief correction or range-bound consolidation before a more decisive move takes place. A break above 1.1200 is likely to signal the continuation of the bullish trend, with the next leg potentially targeting the 1.1270-1.1350 region. Traders should closely monitor price action around these critical levels for signs of a breakout or reversal.
Traders, if you found this idea helpful or have your own insights to share, feel free to drop a comment. I’d love to hear your thoughts!
On the H4 and H1 timeframes, early signs of a rebound are beginning to take shape, suggesting that the market may be due for a pullback before another leg higher. On the D1 chart, a broader trading range between 1.1200 and 1.1050 is emerging, with the price showing potential to exit a descending wedge pattern—a bullish technical signal often associated with trend reversals. However, despite this positive setup, the current strong distribution around 1.1200 suggests that the market lacks the immediate strength to breach this key resistance zone.
In the short to mid-term, I expect the price to retreat slightly or consolidate within a narrower range between 1.1200 and 1.1140, possibly extending to 1.1110. Once this consolidation phase stabilizes, the pair may mount a renewed attempt to retest the upper boundary of the range. Should this occur, a successful breakout above 1.1200 would open the door for further bullish expansion, with potential upside targets around 1.1270 and 1.1350.
Key resistance remains at 1.1200, while support zones are found at 1.1140 and 1.1110. Above 1.1200, there is a significant pool of liquidity, which could act as a magnet for market participants. This dense liquidity zone may not be easily overcome, requiring multiple tests before buyers can decisively push through.
In conclusion, the market appears poised for a brief correction or range-bound consolidation before a more decisive move takes place. A break above 1.1200 is likely to signal the continuation of the bullish trend, with the next leg potentially targeting the 1.1270-1.1350 region. Traders should closely monitor price action around these critical levels for signs of a breakout or reversal.
Traders, if you found this idea helpful or have your own insights to share, feel free to drop a comment. I’d love to hear your thoughts!
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