Strong Recovery for EUR/USD as Downward Trend Line is Broken

The EUR/USD pair has shown a strong recovery over the past few weeks, with buyers breaking through a significant technical level. The downward trend line, which had been in place since December 2023, was breached last week and has since supported the pair's upward trend.

During this session, volatility might be limited due to the absence of macroeconomic data releases. However, several interventions from FOMC members are expected in the afternoon.

EUR/USD Daily Time Frame chart. Source: xStation 5
 

On the 1-hour chart, we can observe that the price has recently broken through another key technical structure. Although the upward movement has already commenced, the technical target (defined by the previous relative high) has not yet been reached, indicating that this possibility remains.

Overall, it seems that the bullish scenario for the EUR/USD pair is likely to continue.

EUR/USD, 1 hour time frame chart. Source: xStation 5
 

Forex Heatmap. Source: xStation 5

Henrique Tomé,
Analyst Portugal