A bullish channel has begun forming on the 1-hour chart, indicating that the influence of buyers is increasingly robust in driving the EURUSD movement. The consistent patterns of higher highs (HH) and higher lows (HL), coupled with the ZigZag formations that are persistently climbing, illustrate a healthy and enduring trend structure. This scenario signifies a waning of selling pressure, while buying momentum continues to grow with market confidence in the potential for further price increases.
Moreover, the Stochastic indicator moving upwards from the oversold territory strengthens the signal for a potential short-term bullish trend. This technical momentum provides an opportunity for EURUSD to continue its ascent during the European afternoon session, particularly if the price can maintain stability above the dynamically established support within the channel. Should buying pressure remain consistent, this pair might test nearby resistance levels and expand upward toward higher ranges before entering the subsequent phase of consolidation.
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The visible double bottom pattern on the 15-minute chart (blue markings) signals that EURUSD is poised to continue its increase from this area. The price is beginning to show rebound signs, while the Moving Average (MA), which was previously flat, is now turning upwards, confirming a shift in momentum toward the buyers. This technical condition opens the way for EURUSD to test the resistance level at 1.16575, with short-term trend support strengthening as long as the price holds above the established support area.
Technical Reference: sell below 1.16135
Potential Stop Loss 1: 1.165515
Potential Stop Loss 2: 1.16575
Potential Take Profit 1: 1.16195
Potential Take Profit 2: 1.16135
