The EURUSD currency pair shows a strong reversal signal after forming an inverse head and shoulders pattern on the 1-hour chart. This pattern has been confirmed through the breach of the neckline, indicating a potential trend shift from bearish to bullish. Prices are also supported by a zigzag pattern that is on the rise, along with a Moving Average (MA) that is turning upwards, suggesting that a consistent strengthening momentum is beginning to establish itself. This situation reinforces the expectation that the previous selling pressure is subsiding and that buyers are starting to take control of the market.
Moreover, the Stochastic indicator is moving up from the oversold region, further enhancing the outlook for short-term gains. If this momentum continues, EURUSD could test the nearest resistance area around the next psychological level. However, traders are advised to closely monitor price reactions to this resistance, as a failure to break through could trigger a short-term technical correction before the upward trend resumes.
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The EURUSD appears to be displaying signs of strengthening after successfully breaking past a resistance level within a bearish channel on the 15-minute time frame. The upward movement of the Moving Average (MA) reinforces the indication that bullish momentum is starting to develop. With the support of these technical signals, EURUSD has the potential to continue rising in the near term and may test the resistance area around 1.16560.
Technical Reference: buy while above 1.16055
Potential Take Profit 1: 1.16490
Potential Take Profit 2: 1.16560
Potential Stop Loss 1: 1.16135
Potential Stop Loss 2: 1.16055
