EUR/USD has transitioned from a multi-month downtrend into a recovery phase after establishing a major bottom near 1.1350 in July. A sharp impulsive rally through August cleared multi-month descending channel resistance and pushed the pair to highs around 1.1720, before momentum cooled into a corrective pullback toward the 1.1600 region, where price is currently testing key support-turned-resistance levels.
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EUR/USD Daily chart analysis
Daily Chart
Hourly Timeframe (1H) Outlook
On the intraday chart, price action is consolidating in a tight band around the 1.1610 pivot following a sharp decline from the 1.1720 highs. The pair recently bounced off local ascending support around 1.1570 and pushed to 1.1640, but has stalled just beneath upper channel resistance. A confirmed hourly breakout above 1.1645 opens the door for a retest of 1.1680–1.1700, whereas failure to hold the immediate 1.1600 shelf risks a drop back to the ascending trendline support near 1.1560–1.1570, with major horizontal support anchored at 1.1485.EUR/USD chart
Hourly Chart
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