Market Overview
The euro extended its upside momentum on March 24, closing near session highs at 1.1607, just shy of the previous session’s high of 1.1628. This sustained strength suggests continued buying interest in EUR/USD as we head into the European trading week.
Want to trade setups like this automatically? Our free EAs run 24/5 with built-in risk management.
Get Free EAs →EURUSD Price Action & Technical Levels
Current Setup:
- Close (Mar 24): 1.1607
- Resistance: 1.1628 (recent high)
- Secondary Resistance: 1.1640
- Support: 1.1555 (intraday low)
- Key Support: 1.1480 (recent swing low)
The euro has formed a series of higher lows over the past three trading sessions, indicating building bullish momentum. The move from Monday’s open at 1.1541 to Wednesday’s close at 1.1607 represents a 66-pip advance with relatively low volatility, suggesting institutional accumulation rather than panic buying.
Technical Observations:
The daily chart is developing a textbook ascending channel pattern. The lower trendline is anchored near 1.1480, while the upper resistance band sits at 1.1628-1.1640. A break above 1.1628 would target the psychological 1.1700 level, which hasn’t been tested since early March.
Volume profiles suggest buying pressure increased on the March 23 rally (+72 pips from the open), indicating strong conviction among forex trading participants to push euro strength higher.
Economic Drivers
Three factors are supporting euro positioning:
ECB Rate Expectations - Market pricing suggests the ECB may hold rates steady longer than initially expected, reducing the rate differential against the USD.
Risk Sentiment - Improved global equity markets are favoring commodity-linked currencies and EUR, reducing safe-haven demand for the dollar.
US Dollar Softness - Weekly USD weakness suggests profit-taking on dollar longs ahead of upcoming US inflation data.
Trading Outlook
Bullish Scenario: A break above 1.1628 would confirm the bullish bias, targeting 1.1700 and potentially 1.1750 on follow-through. Traders should watch for a clean breakout on volume.
Caution Zone: If price fails at 1.1628 and retreats below 1.1590, a retest of the 1.1555-1.1480 support zone becomes likely. This would invalidate the near-term uptrend.
Key Watch: The 1.1600 level acts as a psychological pivot. Sustained trading above here suggests conviction, while a drop below signals hesitation.
Should the pair remain within the ascending channel, traders may find grid trading approaches particularly effective for capturing profits from the oscillation between channel boundaries.
Risk Management Reminder
Position sizes should reflect the current volatility profile. With the EUR/USD trading in a 78-pip range on March 24, standard stop-loss placement of 50-60 pips is reasonable for swing positions, while day traders should scale accordingly.
Our technical approach emphasizes multiple timeframe confirmation — ensure that your entry setup aligns on both daily and 4-hour charts before committing capital.
Ready to Trade These Levels?
Our free SteadyPips EA and GridMaster EA can help you automate these setups with built-in risk management.
This analysis is for educational purposes only and does not constitute financial advice. Trading forex carries significant risk. Past performance is not indicative of future results.