EURUSD was previously trading inside a clear ascending channel, reflecting strong bullish momentum marked by higher highs and higher lows. Several successful breakouts within this channel confirmed sustained buying interest and healthy trend continuation. However, the bullish move eventually lost strength near the 1.1860 resistance level, where strong selling pressure prevented price from holding above the range high.
After this rejection, the market entered a ranging and distribution phase before breaking down into a descending channel. Within this bearish structure, sellers remained in control, forming consistent lower highs. Still, bearish momentum began to weaken as price approached the key support zone around 1.1790, an area with strong historical demand and multiple past reactions.
Recently, price bounced from this support zone and broke above the descending channel, supported by an ascending triangle base. This breakout signals that selling pressure is fading and buyers are beginning to regain short- to medium-term control.
⸻
Trading Bias & Strategy
As long as EURUSD stays above the 1.1790 support area, the overall structure remains bullish. The current consolidation above this zone suggests accumulation rather than distribution. If buyers continue to defend this level, the next major upside target is the 1.1860 resistance, which matches the previous range high and supply zone.
A strong breakout and sustained trading above 1.1860 would confirm renewed bullish momentum and could lead to further upside toward higher liquidity levels. Since this area may trigger short-term reactions, taking partial profits there is a sensible approach.
On the other hand, if price fails to hold above 1.1790 and drops back below the triangle support, the bullish outlook would be invalidated. In that scenario, EURUSD may retest lower demand zones and continue a broader corrective move.
For now, market structure supports looking for long opportunities from support, with clear invalidation below key demand levels. Always wait for proper confirmation and apply disciplined risk management.
That’s the setup I’m following. Trade safely and manage risk at all times.
