In today’s technical analysis, let’s focus on EURUSD, which is experiencing a sharp upswing following the start of the European session. The price moved quickly from local lows to local highs, signaling strong intraday demand.
What’s particularly interesting is that the pair is trading inside a wedge formation, marked with green trendlines. The lower line of the wedge wasn’t even tested during the latest pullback, which shows that buyers stepped in earlier than expected—an encouraging sign for euro bulls.
Currently, the price is testing a blue horizontal resistance level, which has been respected multiple times over the past few sessions. A breakout above this level would be a positive short-term signal, but the bigger picture requires more.
For a proper long-term buy signal, we would need to see a daily candle closing above the upper boundary of the wedge. That kind of move would likely confirm a breakout and open the door for a sustained bullish leg.
Until then, the sentiment is cautiously optimistic, with buyers clearly gaining momentum.