EURUSD: Why This Temporary Rebound Could Be Misleading

EURUSD Approaches Crucial Support

This week, EURUSD reached a significant support zone, sparking renewed attention from traders. On the weekly timeframe, the most recent major break of structure was downward, and for a while, the pair has been moving within the optimal trade entry range, stretching from the external high to the external low. This broader market context is important, even for those focusing on shorter timeframes.

Looking at the daily chart, EURUSD has continued to form higher highs and higher lows. As long as the price remains above the current external low, the bullish structure is preserved, highlighting the importance of the current level.

On the 4-hour chart, the pair is currently responding to channel support and is trading below its recent value, suggesting a discounted price compared to previous moves.