The EURUSD currency pair has displayed intriguing technical signals following a successful break above the bearish channel on the 1-hour time frame. The price movement that was previously under pressure has now reversed direction with a pullback to the breakout area, indicating the potential for healthy consolidation before resuming an upward trend. This situation suggests that buyers are beginning to take control, especially after the price has remained above a critical level that was previously a source of bearish pressure.
Additionally, the CCI indicator is showing signs of recovery from oversold territory, providing further confirmation that a bullish momentum is forming. With a combination of the break high pattern, a sustained pullback, and strengthening indicator signals, EURUSD has the potential to continue rising in the short term. The next focus is on the nearest resistance area, which will test the strength of buying interest in maintaining this bullish trend.
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Currently, EURUSD is sitting at the lower Bollinger Bands and forming a low point on the ZigZag indicator within the 15-minute time frame, suggesting that selling pressure is starting to ease. This condition opens up opportunities for a price rebound, targeting a test of the important resistance level at 1.16510. If the strengthening momentum persists, the short-term bullish scenario could become even more robust, especially if the price can break through this resistance with strong volume.
Technical Reference: buy while above 1.16630
Potential Take Profit 1: 1.16510
Potential Take Profit 2: 1.16630
Potential Stop Loss 1: 1.15920
Potential Stop Loss 2: 1.15795
