EUR/USD had a remarkable start to March, surging to its highest levels since October. The recent bullish run was marked by strong upward momentum, with consecutive large bullish candles indicating robust buying pressure. However, in the last two days, the pair has entered a bearish correction phase.
So far, this pullback appears to be a normal market correction rather than a significant trend reversal. The current key resistance is the yellow zone, which halted the latest rally and triggered the ongoing decline. As for the downside, the immediate target is the blue horizontal support, which is well within reach given the current momentum.
If the blue support level fails to hold, the next logical target would be the orange support, positioned significantly lower. However, given the overall structure of this rally, this scenario remains less likely. The broader trend still favors buyers, and in the medium to long term, EUR/USD is likely to challenge and eventually break above the yellow resistance.
If the price successfully closes above this key level, the next natural target would be the black horizontal resistance, which represents the highs from August and September 2024. Until then, traders should monitor the ongoing correction closely to assess whether it remains a short-term pullback or develops into something more significant.