Euro / U.S. Dollar
Long
Updated

EUR/USD Breaks Downtrend – Is a Reversal on the Horizon?

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The EUR/USD pair has officially broken above the descending trendline on the 1-hour (H1) chart — a structure that has exerted downward pressure over several recent sessions. Notably, this breakout is accompanied by a clear retest, signaling a potential confirmation of a trend reversal.

At the time of writing, EUR/USD is trading around 1.17335, while the next major resistance lies near 1.17850 — a level that aligns with a significant volume accumulation zone as shown by the Volume Profile indicator. This increases the likelihood of a strong price reaction in that area.

If EUR/USD holds above the broken trendline and continues to print bullish confirmation signals — such as bullish engulfing candles or a successful breakout-retest pattern — the market could potentially aim for the 1.17850 target in the short term. However, if price faces rejection around this level, we might see a reversal back down or a shift in current positioning.

What do you think about this setup? Share your analysis in the comments below and let’s discuss strategy together!
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