EURUSD Healthy Correction Could Set Up Next Bullish LegEURUSD continues to trade within a strong bullish structure, marked by a consistent sequence of higher highs and higher lows across multiple timeframes. The pair recently tested a significant resistance zone around $1.18, which acted as a swing high and has since been defended by sellers. This rejection has led to a short-term pause in the uptrend, with price now consolidating around the value area high, a critical area on the volume profile that typically precedes either continuation or a corrective move.
From a technical standpoint, a pullback from the current level would be healthy, especially given the extended nature of the recent move. The ideal retracement zone lies between the 0.618 Fibonacci level, the point of control (POC), and the 200-period moving average — all of which converge to form a strong demand region. A revisit of this zone would offer a textbook opportunity for the formation of a higher low, which would preserve the existing bullish structure and invite renewed buying interest.
A correction into this region would not indicate weakness but rather reinforce the strength of the trend. It allows for momentum reset and offers a more sustainable base for the next potential move higher, potentially targeting a breakout above the $1.18 swing high.
As long as price action remains above the previous higher low and these key support zones hold, the bullish bias remains intact, and traders may look for long opportunities on signs of a reversal within the corrective zone.
