The EURUSD currency pair is beginning to exhibit signs of a directional shift after a prolonged downtrend that has been prevalent for some time. The price has managed to break through the bearish resistance channel, signaling the initial potential for a trend reversal towards a bullish zone. This technical pattern suggests that selling pressure is starting to ease, while buying momentum is gradually gaining strength. The upward direction of the Bollinger Bands (BB) adds to the confidence that the market is transitioning from a correction phase to a recovery phase.
Technical support is reinforced by confirmation from the ZigZag indicator and the Moving Average (MA), which have begun to breach previous highs, indicating an upward push on the 1-hour time frame. If the price can maintain itself above the breakout area and establish a Higher Low structure, the likelihood of further EURUSD gains could remain viable into the next session. Nevertheless, traders are advised to watch for a potential brief pullback before the upward momentum resumes consistently.
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A bullish channel is now beginning to form on the EURUSD pair, indicating a potential continuation of the upward trend in the short term. The upward trajectory of the Moving Average (MA) and the positive position of the MACD reinforce this bullish signal. During this evening’s US session, the price is testing a significant resistance area at 1.16890, which will determine whether the buying momentum can continue or if there will be a temporary correction before the next rise.
Technical Reference: buy while above 1.16195
Potential Take Profit 1: 1.16790
Potential Take Profit 2: 1.17875
Potential Stop Loss 1: 1.16310
Potential Stop Loss 2: 1.16195
