EURUSD Technical Analysis: Bullish Momentum Above 1.1757
Market Overview
The EUR/USD pair continues to demonstrate robust bullish momentum as we head into the second half of April. Monday’s close at 1.1757 marks the highest level in the recent uptrend, representing a strong push higher after last week’s consolidation. The pair has gained approximately 80 pips since April 6, signaling renewed risk appetite in the market.
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Get Free EAs →Key Currency Pair Movements
EUR/USD (1.1757) - The euro is performing exceptionally well against the dollar. Over the past five trading days, the pair has climbed from 1.1541 to 1.1757, establishing a clear uptrend with higher highs and higher lows. The recent momentum suggests continued bullish interest, though traders should remain vigilant for potential profit-taking.
GBP/USD - While specific data isn’t provided today, sterling typically follows risk sentiment trends. Monitor this pair as a confirmation signal for broader dollar weakness.
USD/JPY - The yen’s safe-haven status means it often moves inversely to risk appetite. If USD/JPY is declining, this supports the bullish narrative for EUR/USD we’re seeing.
Technical Analysis
Key Levels
- Resistance: 1.1765 (intraday high from April 13)
- Support: 1.1610 (April 13 opening level)
- Strong Support: 1.1541 (April 8-9 trading range)
Chart Pattern Recognition
The daily chart reveals a textbook ascending channel pattern that began forming around April 6. Price is currently trading near the upper band of this channel, which often acts as dynamic resistance. The 50-day moving average is likely providing support underneath—a key level for mean reversion traders.
Volume Context: The strong close above 1.1700 on Monday suggests institutional buying interest. Closes above resistance levels often indicate conviction from larger market participants.
Moving Average Analysis
With EUR/USD trading above key moving averages, the intermediate-term bias remains bullish. However, the pair is approaching overbought conditions on the 4-hour chart, which could prompt a pullback to the 1.1650-1.1680 range before the next leg higher.
Economic Events to Watch
Watch for:
- ECB speakers this week regarding monetary policy direction
- US inflation data (CPI) - any hot print could weaken EUR/USD
- Jobs reports from both zones - employment strength typically supports respective currencies
These catalysts could trigger significant volatility and test the technical levels outlined above.
Trading Outlook
Bullish Scenario: A break above 1.1765 could extend gains toward 1.1800, with next resistance around 1.1850. This would require sustained buying interest and confirmation from positive eurozone economic data.
Bearish Scenario: A rejection at current levels could trigger a pullback to 1.1650, where support has previously held. Breaks below 1.1610 would invalidate the current uptrend and signal a return to April’s consolidation range.
Best Setup: For grid trading strategies, consider placing grids between 1.1650-1.1765, allowing you to capitalize on this range while maintaining favorable risk/reward ratios.
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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.