EUR/USD price gains momentum after breakout and targets $1.14 resistance with further upside potential
EUR/USD gains momentum after breaking key resistance, testing 1.1360 next
EUR/USD is trading at $1.1335 as of May 23, showing renewed strength following a breakout from a multi-session consolidation range. The euro has gained traction against the U.S. dollar, with price action reclaiming bullish structure across intraday and higher timeframes. The pair is currently testing key resistance levels, signaling a potential move higher in the short term.
Highlights
- EUR/USD shows bullish momentum after breaking above key resistance near 1.13.
- The 4-hour chart displays a successful breakout, and further upside is possible.
- A daily close above 1.1350 could pave the way for a move toward 1.1400–1.1495.
The recent rally has brought EUR/USD back above the 1.1300 level, providing traders with fresh upside targets. With the trend showing sustained strength, the market appears ready for further bullish movement, especially if the euro can clear the next resistance zone at 1.1360.
EUR/USD price dynamics (May 2025) Source: TradingView.
Breakout structure and bullish continuation
On the 4-hour chart, EUR/USD broke above the downward-sloping trendline that had capped price action since the May high. The breakout above the 1.1290–1.1300 zone, which previously acted as resistance, now flips into a short-term support base.
The 20/50/100/200 EMAs are aligned bullishly, supporting a positive medium-term structure. Bollinger Bands are expanding, signaling rising volatility. The upper band is targeting 1.1364, which aligns with the next key resistance zone from earlier May price rejections.
Short-term resistance levels and bullish outlook
From a broader perspective, the daily chart reveals that EUR/USD has successfully rebounded from the 1.12 support zone. It is now approaching a descending trendline from the 2025 high. The next critical resistance lies between 1.1400–1.1495, which has triggered strong selling in the past. A daily close above 1.1350 would increase the likelihood of a revisit to this upper resistance band.
On the 30-minute chart, EUR/USD has made a clear breakout above previous intraday resistance near 1.1300 and is attempting to consolidate above this level. The rising trendline that supported price since May 21 remains intact, and the pair is forming higher highs and higher lows, suggesting the current uptrend is well-structured. The next test will be the overhead rejection zone around 1.1355–1.1360.
As previously discussed, EUR/USD is showing bullish momentum after successfully breaking above key resistance. The near-term outlook remains positive, and a move above 1.1360 could set the stage for further gains toward 1.1400–1.1495. However, a pullback toward 1.1300–1.1280 is likely to find support from previous resistance-turned-support levels.
