On the 4-hour timeframe, EUR/USD has successfully broken out of a long-term descending trendline. After the breakout, the pair made a retest, confirming bullish continuation. Currently price is slightly correcting downward but still holding above key support zones.
Key Technical Highlights
📌 1. Breakout From Downtrend
- The downward sloping trendline has been broken.
- Price retested the breakout area — confirming valid breakout.
📌 2. Moving Averages (SMA Support)
- SMA (9) remains above SMA (20) — showing short-term bullish momentum.
- Current correction is holding around SMA (20), acting as support.
📌 3. Higher Lows Forming
- Since mid-November, price has been forming higher lows.
- This pattern supports bullish continuation.
📊 Important Price Levels
| Zone Type | Price |
|---|---|
| Immediate Support | 1.1600 |
| SMA Support Zone | 1.1625 |
| Major Support | 1.1500 |
| Immediate Resistance | 1.1680 |
| Major Resistance | 1.1750 |
🧠Market Sentiment
Bias remains bullish as long as:
- EUR/USD trades above 1.1600
- No strong candle closes below SMA (20)
🎯 Potential Future Scenarios
📈 Bullish Scenario
If price bounces from 1.1625 and breaks 1.1680:
➡️ Next Target: 1.1750
📉 Bearish Scenario
If price drops below 1.1600:
➡️ Next Downside Target: 1.1500
📆 Outlook Summary
| Trend | Direction | Confidence |
|---|---|---|
| Bullish | Uptrend | Medium–Strong |
❓ Frequently Asked Questions
Q1: Should traders look for buying opportunities?
Yes — above 1.1600, but with bullish confirmation.
Q2: Where is short (sell) opportunity?
Below 1.1600 (strong candle close preferred).
Q3: Was the breakout fake?
No. The breakout and retest confirm validity.
📌 Final Thoughts
EUR/USD remains technically bullish. The breakout structure is healthy, moving averages support the trend, and the market may aim for 1.1750 if 1.1680 breaks.
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