⬤ EUR/USD delivered a strong bullish move on the daily chart, breaking above a previously established range and pushing to higher levels before momentum cooled. The focus now is on how price behaves after the breakout. Recent candles show a pullback from the highs, indicating a pause rather than a clear reversal.
⬤ The chart shows a decisive break above the former range high near mid-1.18, which had capped price action through much of December. After clearing this level, EUR/USD extended toward upper 1.19 before hitting selling pressure. The pullback has brought price back toward a marked fair value gap zone where prior inefficiencies remain. This area overlaps with former resistance that's now transitioned into potential support, giving it added technical weight.
⬤ Price behavior inside the highlighted zone points to possible consolidation. EUR/USD may trade back and forth within this area as the market rebalances after the impulsive move. The pullback appears orderly with no signs of aggressive downside continuation on the daily structure, supporting the view that this move is corrective rather than signaling immediate trend failure.
⬤ This setup matters because EUR/USD often serves as a key barometer for macro sentiment across major currencies. How price reacts around former resistance turned support could define near-term momentum. A sustained hold above this zone would keep the bullish structure intact, while a deeper breakdown would increase correction risk. As EUR/USD trades near technically important levels, upcoming sessions will likely shape short-term expectations across the FX market.
