EUR/USD price tests key resistance as breakout attempt looms
EUR/USD tests key resistance near 1.1390 as breakout attempts gain traction
EUR/USD has entered a critical phase as it consolidates within a symmetrical triangle pattern on the daily chart. After testing the $1.1245 support zone, the pair has recently rebounded and is now pressing against the upper trendline resistance near 1.1390. This technical structure suggests that the pair could be gearing up for a potential breakout, depending on the continuation of bullish momentum.
Highlights
- EUR/USD consolidates within a symmetrical triangle, with resistance near 1.1390 and support at 1.1245.
- A breakout above 1.1390 could propel the pair toward 1.1450 and 1.1500.
- Failure to break 1.1390 and a drop below 1.1320 may lead to a retest of 1.1260.
On the 4-hour chart, the pair has respected key support levels, with the 1.1320–1.1340 region reclaiming demand and showing signs of bullish intent. However, resistance near 1.1390 remains a critical barrier.
EURUSD chart analysis (Source: TradingView)
If EUR/USD can break above this level, it could trigger a move toward 1.1450, while a failure to sustain above 1.1320 could bring a retest of lower levels. Momentum indicators such as the 30-minute RSI and MACD suggest bullish pressure, although the Stochastic RSI signals potential short-term exhaustion as it nears the overbought zone.
The Ichimoku Cloud and Bollinger Bands reinforce market uncertainty
The Ichimoku Cloud on the 30-minute timeframe shows that EUR/USD is attempting to break above the Kumo cloud, signaling bullish potential if the upper boundary at 1.1356 is cleared. Meanwhile, the Bollinger Bands on the 4-hour chart indicate increasing volatility as the price tests the midline from below. The 20/50/100/200 EMAs are clustered in the 1.1290–1.1330 range, marking a crucial decision point for traders.
As discussed previously, EUR/USD’s price action has been guided by key trendline support and resistance, forming a consolidation pattern that has traders on alert for an imminent breakout. The pair’s performance near the apex of the triangle will be pivotal for determining the next directional move. A strong close above 1.1390 could fuel a rally toward higher resistance zones, while failure to hold the support levels may trigger a pullback toward 1.1260 or lower.
