EUR/USD price consolidates near $1.1330 as market awaits breakout decision
EUR/USD consolidates above 1.1300, with a potential breakout above 1.1340 in focus
The EUR/USD pair has shown a strong recovery since early April, climbing from the 1.0700 handle to recent highs just below 1.1475. The currency pair has broken through multiple descending trendlines across timeframes, signaling a bullish reversal structure.
Highlights
- EUR/USD consolidates near 1.1330 after stalling below 1.1475 resistance.
- The pair holds above the 1.1300–1.1320 support zone, with a potential breakout above 1.1340.
- A break below 1.1280 could extend the correction toward 1.1210.
However, after briefly testing the 1.1450–1.1470 resistance zone, the rally has stalled, and price action is now consolidating above the 1.1300–1.1320 support region.
Bullish structure remains intact despite near-term consolidation
On the daily chart, EUR/USD has formed a broad symmetrical triangle breakout, confirming bullish strength above the 1.1220 support zone. The price is still holding above a rising trendline from the March lows and remains supported within the upper half of a well-defined ascending channel. The immediate resistance lies at the 1.1450–1.1470 region, which has acted as a barrier to further upside movement. A clean break above 1.1470 could see the pair revisit the 1.1500 zone and beyond, potentially testing the 1.1550 mark.
EUR/USD price forecast (Source: TradingView)
The 4-hour chart shows a recent rejection from the 1.1450 level, followed by a controlled pullback. Support has held near 1.1310, where previous supply has now turned into demand. A secondary ascending support line from May 15 remains intact, maintaining the bullish structure unless broken decisively. If the 1.1280 support zone is breached, it could extend the correction to the 1.1210 region.
Short-term consolidation and breakout triggers
Momentum indicators on the shorter timeframes are mixed. The RSI on the 30-minute chart is around 48, reflecting neutral momentum after cooling from overbought conditions. The MACD lines have converged near the baseline, suggesting a pause in momentum rather than a directional shift. Meanwhile, the Ichimoku Cloud on the 30-minute chart has flipped to neutral-bullish, signaling consolidation. The Bollinger Bands on the 4-hour chart are narrowing, suggesting that a breakout from the current range is imminent.
In conclusion, the EUR/USD price action remains bullish as long as the pair holds above the 1.1300–1.1320 support region. A breakout above 1.1340 could trigger a move toward 1.1375 and 1.1450. However, failure to hold above the 1.1280 support zone could lead to further downside, with the next support near 1.1210.
As previously discussed, EUR/USD remains within a bullish structure, supported by key trendlines and momentum. The current consolidation phase is expected to resolve with a breakout above 1.1340 or a pullback towards 1.1210, depending on how the pair reacts to key support levels in the coming sessions.
