EUR/USD price breaks above key trendline as bullish structure eyes $1.146 test
EUR/USD breaks above trendline as bullish momentum builds toward 1.1460–1.1500 range
EUR/USD posted a strong upside move on June 2, climbing 0.56% intraday to trade near 1.1409 as the pair pierced above a descending trendline that had capped rallies through May. The euro’s strength reflects both technical breakout confirmation and a pause in U.S. dollar momentum, as price now tests the neckline of a bullish continuation pattern.
Key highlights
- EUR/USD gained 0.56% to trade near 1.1409 after breaking above a descending resistance trendline.
- The 0.618 Fibonacci level at 1.1378 has been cleared, with focus now shifting to 1.1460 and 1.1570.
- Momentum indicators signal short-term exhaustion, but broader structure supports further upside.
The next challenge lies near the 1.1460 region, which marks both Fibonacci and structural resistance.
Technical structure supports bullish continuation
The daily chart shows EUR/USD reclaiming strength by breaking above the 0.618 Fibonacci retracement at 1.1378, derived from the March low at 1.1064 to the April high at 1.1572. This upward move reinforces the bullish flag formation forming since early May, and a daily close above 1.1460—the 0.786 retracement—would pave the way toward 1.1570 and 1.1650. Price has maintained a higher-low structure from March and successfully defended the 1.1180 level during recent consolidations.
EUR/USD price dynamics (Source: TradingView)
The 30-minute and 4-hour charts show a clean breakout through the 1.1375–1.1385 cluster, now acting as short-term support. The RSI currently reads 55.38, following a retreat from previous overbought levels, while the MACD shows slight convergence, hinting at a cooling phase rather than a reversal. Despite the brief drop in momentum, bulls remain in control unless the price dips below the 1.1340–1.1300 zone.
Ichimoku Cloud and oscillator signals show controlled consolidation
On the 30-minute chart, price remains firmly above the Ichimoku Cloud, with Tenkan-Sen and Kijun-Sen lines aligned bullishly. The cloud's forward projection is starting to widen, suggesting upside continuation. Meanwhile, the Stochastic RSI is turning down from overbought territory, and the Chande Momentum Oscillator has dipped to -46.29, pointing to a near-term pause in velocity but not a bearish reversal.
Outlook for June 3: If EUR/USD maintains position above 1.14 during the U.S. and European sessions, another leg higher toward 1.1460–1.1500 is likely. Failure to hold 1.1340 would undermine the breakout and shift focus back to the 1.1300 level.
In earlier updates, we highlighted the euro’s struggle against descending resistance and the importance of holding the 1.1340 zone. That zone has now been successfully flipped to support, with EUR/USD breaking above trendline resistance and setting the stage for continuation toward 1.1570 if momentum stabilizes.
