Peter Smith
The EUR/USD pair is demonstrating resilience above crucial demand zones, with technical indicators suggesting a potential breakout to new highs. Daily chart patterns reveal bullish structures building momentum for the next significant move upward.
Daily Analysis
The EUR/USD is trading with impressive bullish momentum after successfully reclaiming critical support levels. Market experts SIRRILLAH note, the pair is consolidating above an order block and fair value gap, both serving as a foundation for further upside movement.
This technical setup indicates a possible advance toward the all-time high zone if buyers maintain their grip on the market.
Technical Analysis: Key Levels to Watch
- Support Zones: Several fair value gaps and order blocks shown on the chart create a solid foundation for continued bullish movement, with the pair respecting these levels and forming higher lows alongside higher closes - a classic bullish pattern
- Resistance Levels: The primary upside target remains the all-time high zone, though minor supply areas may emerge near recent swing highs
- Projection: A retest of the order block and fair value gap cluster could provide the necessary liquidity to fuel a rally into record territory
Macro Context: Why the Euro is Gaining Ground
The euro's recent strength stems from weakening U.S. dollar momentum as softer inflation data and cautious Federal Reserve commentary have pressured the dollar index. Meanwhile, eurozone stability creates a more supportive environment for EUR/USD advancement, with the technical picture aligning with these fundamental drivers to suggest further upside potential.
Peter Smith
