EUR/USD price approaches $1.18 with bullish structure intact ahead of key breakout test
EUR/USD tests resistance near 1.1800 as bullish trend extends from June lows
The euro maintained its firm footing against the dollar on July 3, with EUR/USD trading near 1.1799 after a strong multi-week rally. The pair continues to build on a technical breakout that emerged in early June, bolstered by momentum and structural support across multiple timeframes.
Highlights
- EUR/USD holds near 1.1799 after completing a bullish pennant breakout above 1.1400 in June.
- Price action remains above key support at 1.1750, with further upside likely if 1.1810 is cleared.
- Momentum is cooling, but the structure supports extension toward 1.1850 and 1.1920.
However, price is now stalling below the psychological 1.18 barrier, raising questions about near-term upside continuity.
Breakout above 1.14 remains valid as structure holds
On the daily chart, the euro-dollar pair remains well bid after confirming a bullish pennant breakout near 1.14 last month. The move was accompanied by a clear change of character and a break of structure, flipping several resistance levels into support.
EUR/USD price dynamics (Source: TradingView)
The 1.1600–1.1750 range now acts as a buffer zone that buyers are defending. With price trading firmly above this band, the pair retains scope for a continuation toward 1.1850 and potentially 1.1920 in the coming sessions.
Consolidation emerges near key resistance band
Despite the broader trend favoring bulls, shorter timeframes reflect consolidation beneath immediate resistance at 1.1810. The 4-hour chart shows the pair respecting its ascending trendline from early June while digesting gains from the recent leg higher.
The 20/50/100 EMA cluster remains aligned in bullish formation, supporting dips toward the 1.1700–1.1750 zone. Momentum indicators such as RSI and MACD suggest short-term cooling, but no strong reversal signal has emerged yet.
Outlook remains bullish but cautious near resistance
Traders will closely monitor the 1.1800–1.1810 region for breakout confirmation. A decisive close above this zone could open the door for a push toward the 1.19–1.20 handle. Conversely, any failure to hold above 1.1750 may trigger a pullback to 1.1680, though this would likely be seen as corrective unless 1.1600 breaks. Market sentiment remains favorable for the euro as long as the trendline and moving average structure stay intact.
In prior updates, we noted EUR/USD’s structural pivot around 1.1600 following multiple break-of-structure events on the daily chart. That breakout has since evolved into a sustained rally, validating the shift from consolidation to trend expansion.
