EURUSD heads towards resistance, short-term reversal expectedEURUSD has been in a strong uptrend, and we’re currently observing price action is reaching a notable resistance zone. I am watching for a reversal here as marked on my chart, not expecting a major move, but rather a short-term rejection with a downside target at around 1.13670 , which also aligns with the POC.
This is where it can become a decision point, either price finds support and bounces, or it breaks below, and that’s when we might see the move start to extend lower.
If we get a decisive breakdown through that ascending trendline, my next area of interest is marked as TP2. From there we can expect either potential accumulation or another reaction, depending on broader market sentiment at the time.
That said, we're navigating a complex backdrop currently:
The EU macro environment is under pressure, as weak economic data from Europe is contributing to cautious sentiment around the euro.
Meanwhile, a sustained USD bid continues, supported by stronger U.S. growth expectations, favorable yields, and persistent global demand. This further weighs on EURUSD.
Adding to the uncertainty, escalating tensions between Israel and Iran have rattled markets this week. This geopolitical risk could be pushing oil prices higher:
It’s important to note that if price convincingly rejects here and loses structure, especially with high volume and obvious bullish structure, this setup would become invalid. In that case, I would reassess and adapt
