EURUSD – Confluence Support Test: Watch for Bullish Signals? OANDA:EURUSD is currently trading around a key technical support area, which is a confluence zone between the previous sideways range and the medium-term ascending trendline. The price previously broke out of the resistance zone and is now pulling back to retest this area – a common price behavior in a sustainable bullish structure.
If buyers successfully defend this support zone, there is a high possibility that another recovery leg may appear, targeting the technical level around 1.1425, which is the most reasonable target within this setup. However, to confirm the continuation of bullish momentum, there needs to be a clear candlestick signal such as a pin bar or bullish engulfing at the support zone. The absence of strong price reaction here could lead to a slip below the support level, invalidating the short-term bullish structure.
This is a personal viewpoint based on technical analysis, not investment advice. Always reconfirm your trade setups and manage risk carefully.
