I am analyzing the H1 chart for EUR/USD, and I am observing the clear narrative it has established since the start of the new week. I am seeing that after the initial, sharp drop in the first hour of trading, the pair has demonstrated a definitive and categorical refusal to extend its decline any further. I am interpreting every subsequent price action as a testament to underlying bullish sentiment, where even the pauses are not genuine reversals but mere consolidations. I am noting that these pauses have consistently formed stepping patterns, which are essentially brief platforms of accumulation before the next leg higher. I am recognizing this as a classic characteristic of a strong, trend-driven market, where selling pressure is absorbed almost effortlessly by buyers waiting on the sidelines. I am thoroughly examining the structure of these steps, as they provide critical insight into the market’s momentum and the conviction of the participants driving this move.
I am focusing particularly on the two steps highlighted in the analysis, one at 1.1624 and the subsequent one at 1.1644. I am acknowledging that the first step, at 1.1624, was what I would describe as "rough," indicating a zone of slightly more contentious trading where the bears managed to create a bit of choppy, indecisive price action. I am contrasting this sharply with the step that formed at 1.1644, which I perceive as remarkably smooth and polished, as if the market had collectively agreed on the direction and removed all friction from the path upward. I am watching as the price, following that polished consolidation, continues its ascent and is now making a concerted attempt to break above the 1.1660 level. I am, however, formulating a trading plan based on the principle that no trend moves in a straight line forever, and I am identifying two potential resistance zones for a possible sell position above 1.1660: first at 1.1668 and a more significant one at 1.1677. I am currently leaning towards the idea of initiating a sale from the 1.1677 level, anticipating a technical correction from that point. I am simultaneously grappling with a conflicting impression that the pair’s momentum is so potent that it might be aiming directly for the 1.17 handle without any meaningful retracement. I am expressing my frustration at this prospect, as I would strongly prefer not to see such a relentless, parabolic move devoid of the healthy pullbacks and corrections that create sustainable trading opportunities and validate the trend’s strength. I am concerned that a move to 1.17 without a pause would be inherently unstable and could set the stage for a violent reversal, leaving late buyers exposed. I am therefore in a state of analytical tension, cautiously planning my entry for a correction while respectfully acknowledging the market’s current, overwhelming bullish bias.
