Currently, the EUR/USD pair is trading around 1.1700. After a sharp decline, the price reacted to a key demand zone (green area) and has entered a corrective phase. Traders now need to determine whether this move is merely a temporary correction or the beginning of a new bullish wave.
Key Support and Resistance Levels
Key Support: The 1.1650 – 1.1640 zone (green box) from which the price recently bounced. A break below this level could extend the bearish trend toward lower levels.
Short-Term Resistance: The 1.1720 – 1.1730 zone (yellow box), which is currently acting as the first obstacle to further upside.
Main Resistance: The 1.1755 – 1.1760 area. A breakout and confirmed close above this level could open the path for a rally toward 1.1800.
Bullish Scenario
If the price successfully breaks above 1.1730 with strong bullish candles and high trading volume, a move toward 1.1760 and eventually 1.1800 becomes likely.
Bearish Scenario
If the price fails to break above the yellow resistance zone and bearish reversal signals appear, a return to the 1.1650 support zone is likely. A confirmed break below this support could push the price down toward 1.1630 or even lower.
Conclusion
The market is currently in a decision-making phase, and the reaction to the 1.1730 resistance zone will likely determine the next direction. Traders are advised to wait for a confirmed breakout of either support or resistance before entering a position to reduce risk.
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