EUR/USD - Holding Bullish Structure Above Key Fibs and TrendlineTechnical Overview:
EUR/USD continues to respect its ascending channel structure, currently rebounding from the lower trendline support while trading above the 50 EMA and 200 EMA. After a healthy retracement to the monthly support (1.16128), the pair has shown strong buying interest, supported by bullish RSI divergence from oversold conditions on the 8H chart.
Key Levels:
Support Zone: 1.1613 – 1.1634 (Fib Cluster + Channel Support + Monthly Support)
Resistance Zone: 1.1755 (Weekly Resistance) followed by 1.1816 (0.27 Fib Extension) and 1.1887 (0.618 Extension)
Invalidation Level: Below 1.1533 (1.272 Fib + Structural Breakdown)
Confluences:
Price broke above a descending correctional trendline, indicating a potential bullish continuation.
Multiple Fibonacci levels (0.382, 0.5, 0.618) have stacked around the previous consolidation area, increasing probability of a sustained move.
RSI bounce from below 40 suggests short-term momentum reversal.
Trade Idea:
We may see a minor pullback into the 1.16344–1.1659 area before a potential continuation higher. Conservative bulls may wait for a retest of this zone with a bullish engulfing or pin bar confirmation before entering long.
Targets:
First target at 1.1755 (prior weekly resistance)
Second target at 1.1816 (Fib extension)
Final target near 1.1887 (major resistance / upper channel boundary)
Risk Management:
A break and close below 1.1533 would invalidate the bullish setup and signal potential bearish pressure returning to the pair.
