EUR/USD price battles resistance at $1.13 as consolidation continues
EUR/USD battles resistance at 1.1300–1.1330, with key support at 1.1229
EUR/USD is currently trading near the 1.1278 level, attempting a recovery from recent downside pressure. The pair reached a local top near 1.1404 earlier in May but has since formed a descending trendline, which remains a key dynamic resistance across the 4-hour and daily charts.
Highlights
- EUR/USD consolidates near 1.1278, with key resistance at 1.1300–1.1330.
- A breakout above 1.1330 could target a retest of the 1.1404 high.
- Failure to hold above 1.1229 may see the pair heading toward 1.1180.
After bouncing off a confluence of horizontal support and an ascending trendline from the March lows, the price suggests that bulls are defending the uptrend structure. However, the upside remains fragile unless a clean break above the 1.1310–1.1330 resistance zone occurs.
Resistance and support levels shaping near-term direction
On the 4-hour chart, EUR/USD has formed a falling wedge-like structure, with a short-term bounce emerging after demand was found near 1.1220. The 20/50 EMA cluster is beginning to flatten out around 1.1280–1.1300, signaling a potential inflection point. Immediate resistance stands at 1.1307, followed by 1.1328, coinciding with the upper Bollinger Band and local supply. If the price fails to clear these levels, another pullback toward 1.1229 or even 1.1180 support may become likely.
EUR/USD price forecast (Source: TradingView)
Momentum indicators present a mixed picture. On the 30-minute chart, the RSI has rebounded from oversold levels and is currently at 55, suggesting early-stage recovery. Meanwhile, MACD has crossed into bullish territory, with a shallow histogram build-up, signaling that momentum is shifting upward, but not yet decisively. The daily RSI has also pulled back from the overbought zone, sitting in neutral territory, which suggests that a consolidation phase may follow.
Key levels to monitor for breakout or breakdown
Bollinger Bands on the 4-hour chart are contracting slightly, indicating reduced volatility, which often precedes a breakout or breakdown. The price is hovering near the midline of the bands, with a breakout above 1.1300–1.1320 likely to pave the way toward retesting the 1.1404 high. On the downside, failure to hold above the 1.1229–1.1230 region could see the pair drop toward 1.1180 or even the 1.1037 zone.
EUR/USD remains caught in a consolidation range between 1.1229 support and 1.1330 resistance. A sustained move above 1.1330 could signal a continuation of the bullish trend, while failure to maintain support at 1.1229 may drag the pair lower toward 1.1180. Traders should watch for confirmation of a breakout or breakdown to determine the next directional move.
As previously discussed, EUR/USD remains in a consolidation phase, with key resistance at 1.1300–1.1330. A decisive breakout above this zone could trigger further upside toward 1.1404. Conversely, failure to hold 1.1229 support would open the door for downside risk, with targets at 1.1180 and possibly 1.1037.
