FX.co ★ EUR/USD

After reviewing the current H4 chart of EUR/USD, my overall outlook remains cautiously bullish, although I believe the pair is approaching an area where buyers may start facing stronger resistance. The recent price action has been impressive, with momentum clearly shifting in favor of the bulls after a prolonged period of consolidation. However, I think this rally is entering a phase where risk management becomes more important than blindly chasing higher prices The first thing that stands out to me is the strong impulsive move that started after the market established a solid base around the 1.1360–1.1380 area. That breakout completely changed the short-term market structure. Instead of producing lower highs and lower lows, EUR/USD began printing higher highs and higher lows, which is one of the clearest signs that buyers have regained control. Another point supporting my bullish bias is the behavior of the trend indicator on the chart. The dots have flipped below price and continue to trail underneath the candles, suggesting that the prevailing momentum is still positive. While indicators should never be used in isolation, I consider them useful when they confirm what price action is already showing Despite the bullish structure, I don't believe entering long positions at the current highs offers the best risk-to-reward ratio. Markets rarely move in a straight line, and after such an aggressive advance, some profit-taking is completely normal. A healthy retracement toward previous breakout zones would actually strengthen the trend rather than weaken it. The region around 1.1500–1.1510 now looks like the first area I would monitor for renewed buying interest. If buyers defend this zone and produce strong bullish candles, I would see that as confirmation that the uptrend still has room to continue. On the other hand, if price falls below this support with increasing momentum, it could signal the beginning of a deeper correction toward lower support levels Looking at resistance, the recent highs near 1.1560 represent an important technical barrier. The market has already tested this region, which means sellers are beginning to appear. A decisive H4 close above this level would likely attract additional buying pressure and could open the path toward fresh highs. Until that breakout occurs, I think traders should expect increased volatility and possible sideways movement beneath resistance. From a momentum perspective, I don't see any major signs of bearish reversal yet. There are no obvious lower highs forming, and buyers continue to step in after every minor pullback. As long as this pattern continues, I prefer to respect the existing trend instead of trying to predict an early reversal If I were planning trades based solely on this chart, my preference would be to wait for pullbacks into support rather than buying after extended bullish candles. Chasing strong rallies often exposes traders to unnecessary risk, especially when price is already trading near resistance.