EURUSD Forming Ascending Channel

EURUSD is currently respecting a well-defined ascending channel on the daily chart, with price recently bouncing from the lower boundary near the 1.1600 zone. This area has acted as a strong demand region multiple times, signaling active buying pressure from institutional players. The pair is now retracing upward, but I anticipate a short-term pullback before continuation toward the upper channel resistance around the 1.1950–1.2000 region. As long as price holds above the rising trendline, the bullish structure remains intact, offering a high-probability trend continuation setup.

From a fundamental perspective, the euro is gaining mild support as expectations grow that the European Central Bank may maintain restrictive policy for an extended period to combat inflation, while the US dollar is facing pressure amid increasing speculation of potential rate cuts from the Federal Reserve if economic slowdown deepens. Recent softer US labor data and weaker consumer sentiment have weighed on the dollar index, giving EURUSD upside momentum. However, volatility could increase ahead of key economic releases such as US GDP figures and eurozone CPI updates.

I’ll be watching for a controlled correction toward the 1.1700–1.1650 area. If buyers defend that zone with strong rejection patterns, I’ll be looking to position for long entries targeting the upper channel boundary. This setup aligns both technically and fundamentally, making it one of the cleanest swing opportunities on the board. Patience on the pullback will secure better entry and maximize profit potential.