The EUR/USD pair on the daily timeframe remains stuck in a tight consolidation zone as traders wait for the next decisive move. After breaking its ascending trendline, price has entered a range-bound structure between 1.1550 and 1.1750.
Key Levels
- Support Zone: 1.1550 – 1.1600 (highlighted in green), which previously acted as a strong demand area, preventing further declines.
- Resistance Zone: 1.1750 (purple line on the chart), which has repeatedly rejected price and now serves as the main barrier for buyers.
Market Structure
Following the break of the ascending trendline and a clear Change of Character (CHOCH), price shifted into a corrective phase. However, the demand zone around 1.1600 has held firm, creating no new lows. This indicates possible accumulation in the current range.
Possible Scenarios
Bullish Scenario:
If price breaks above 1.1750 and a daily candle closes above this level, the pair could extend its rally towards 1.1820 and potentially 1.1900. Given the strong bounces from support, this scenario looks more likely.
Bearish Scenario:
If price once again rejects 1.1750 and breaks below the 1.1600 support, selling pressure may increase, targeting 1.1500 and even 1.1400.
Conclusion
EUR/USD is approaching a critical juncture. Traders should closely monitor price action around the 1.1750 resistance. A breakout above this zone may trigger a fresh bullish rally, while rejection could reinforce the risk of a pullback toward lower supports.
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