Today's session is being marked by an improvement in market sentiment. Risk assets are recovering, while the US dollar retreats.
Daily Time Frame Chart
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Open real account TRY DEMO Download mobile app Download mobile appOn the D1 chart, we can see that the current bullish recovery of the EUR/USD pair continues this Monday.
Although the price has not tested the lower boundary of the channel, buyers are managing to regain control of the price.
EUR/USD, Daily time frame chart. Source: xStation 5
EUR/USD 1-hour time frame chart. Source: xStation 5
On the 1-hour chart, we can see that right now the price is testing an important resistance zone in which is marked by the upper limit of the current structure - the pennant.
In case buyers manage to break above this obstacle, the bullish move could intensify further.
Nevertheless, it is important to note that medium- to long-term market sentiment remains bearish, putting the EUR/USD pair at risk of further declines.
NZD is leading the gains at this moment.
Heatmap. Source: xStation 5
Henrique Tomé, XTB Portugal
