Saad Ullah
The EUR/USD currency pair is capturing traders' attention today as it stages a significant recovery from recent lows, with technical analysts spotting a crucial breakout that could signal the start of a sustained rally. After bouncing decisively from key support levels, the euro is now testing critical resistance that many believe could unlock substantial upside potential in the coming sessions.
EUR/USD Price Breaks Through CISD Resistance Level
Fresh momentum is building in the EUR/USD as the pair successfully rebounds from the IFVG (Imbalance Fair Value Gap) zone, demonstrating renewed buying interest among institutional players. Trading activity on August 20th, 2025, shows the currency pair has not only recovered from its recent dip but is now challenging the CISD resistance level that has been closely watched by market participants.
The technical setup looks increasingly promising as the price action suggests a genuine shift in sentiment rather than a temporary bounce. The SSL (Sell-Side Liquidity) area provided solid foundation for this upward move, indicating that smart money may be positioning for higher prices. If the current candle manages to close with its body above the CISD level, this could trigger additional buying pressure from breakout traders who've been waiting for confirmation.
Market structure analysis reveals that buyers have been accumulating positions around these lower levels, setting up what appears to be a classic reversal pattern. The strength of the bounce from IFVG suggests institutional involvement, which often precedes more significant directional moves in major currency pairs.
Bulls Target 1.1200 BSL as Next Major EUR/USD Price Objective
Should EUR/USD successfully maintain its position above CISD resistance, technical analysts are eyeing the BSL (Buy-Side Liquidity) zone near 1.1200 as the next logical target. This level coincides with previous market highs and represents a area where substantial buy orders are likely positioned, potentially fueling further upside momentum.
The path toward 1.1200 won't necessarily be straightforward, but the current chart structure suggests that buyers are gaining control of the narrative. Previous resistance levels that once capped rallies could now serve as support on any temporary pullbacks, creating a more favorable risk-reward scenario for bullish positions.
However, traders should remain cautious about premature celebrations. If EUR/USD struggles to hold above CISD or shows signs of rejection at current levels, a short-term retracement could unfold before another attempt higher. The key will be monitoring today's closing price action to confirm whether this breakout has genuine staying power or represents another false dawn for euro bulls.
Saad Ullah
