Euro / U.S. Dollar
Long

EUR/USD Correction in Progress – Can Bulls Still Reach 1.20?

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EURUSD is retesting key structure after rejecting from recent highs. Price remains above long-term trend support, but compression is tightening. This post outlines the critical zones to watch, what invalidates the move, and whether the 1.20 target remains realistic.

Technical Analysis:
Price has pulled back from recent highs after failing to hold above short-term resistance. While the current move looks corrective, we are now at a decision point. The pair is trading above the long-term bullish trendline, but confirmation is needed before continuation toward 1.20.

Support Zones (if pullback deepens):
🟠 1.09957–1.09439 – Last 1H Support (Medium Risk):
Short-term intraday demand zone. If price pulls back, this is the first area bulls might defend.
Stop-loss: Below 1.09439

🟢 1.05484 – Weekly Strong Buy Zone (Low Risk):
Major structure from previous macro reversals. Clean area for swing entries if reached.
Stop-loss: Below 1.03400

Resistance Target:
🔴 1.20944 – Daily Strong Resistance (High Rejection Risk):
A key supply zone from previous macro structure. If price reaches this level, watch for rejection.
Stop-loss: Above 1.22821 – A breakout above this invalidates short setups and could trigger a higher timeframe breakout continuation.

Outlook:

Bullish case: Holding above 1.09439 and reclaiming 1.1600+ opens the door to test 1.2094.

Bearish case: A clean loss of 1.09439 would shift momentum toward deeper support at 1.0548.

Bias: Short-term neutral. Structure remains bullish while support zones continue to hold.

Fundamental Insight:
The FOMC meets on Wednesday, May 1. If the Fed hints at easing or rate cuts later this year, EURUSD could rally toward 1.20 on USD weakness. But if Powell reaffirms a “higher-for-longer” stance, expect downside continuation into the 1.09957 or 1.05484 support zones.

✅ Conclusion:
EURUSD is at a technical decision point. If buyers defend mapped support, the path to 1.20 remains valid. A breakdown below 1.094 could trigger deeper retracement. Until the picture clears, remain reactive to structure and macro tone.

Not financial advice. Like & follow for more EURUSD setups and structured FX market analysis.

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