Alex Dudov
After several sessions of downward pressure, EUR/USD is showing early signs of recovery as the pair rebounds from a well-defined intraday demand zone. Buyers appear to be regaining control, with price now stabilizing above a key structural level that could serve as the foundation for a move higher.
EURUSD Technical Outlook and Support Structure
The chart shows EUR/USD swept liquidity below prior lows before sharply reversing upward. This move reclaimed the 4H IRL level and established new internal support around 1.1630–1.1637. The reclaim of this zone marks a shift in short-term market structure from bearish to early bullish intent.
The pair continues to respect a clear demand area. Following the liquidity sweep, price pushed upward into a new imbalance zone, suggesting buyers have stepped in with conviction. The next key upside target sits at 1.1655, where a concentration of resting liquidity is likely positioned.
Drivers Behind the Move
This intraday recovery aligns with broader market sentiment shifts as traders reassess U.S. inflation trends and recalibrate expectations for future Federal Reserve rate adjustments. Meanwhile, cautious but steady messaging from the European Central Bank has provided enough macro support for a short-term rebound. These conditions, combined with the technical liquidity sweep, have created a favorable environment for a corrective rally.
Key Levels to Watch
- Strong Support: 1.1630 — demand cluster where buyers have stepped in; failure to hold this level would signal renewed bearish momentum and could send the pair toward 1.1615
- Immediate Target: 1.1655 — upside target where resting liquidity is concentrated; sustained move into this zone would confirm buyer strength
- Extended Target: 1.1670 — if buyers maintain control above 1.1655, the pair could push toward the mid-1.1670 area
Forward Outlook
If EUR/USD continues to hold above the 1.1630 demand cluster, the bullish structure remains valid. The technical reaction suggests buyers have regained short-term initiative, making this price zone crucial for the next directional move in the pair. Traders should monitor whether the pair can sustain momentum into the 1.1655 target zone, which would confirm the strength of this recovery attempt.
Alex Dudov
