Technical Analysis of EUR/USD (1H Chart)

1. Trend Identification
Bullish Trend: The price has been in a strong uptrend, trading well above the 200-period moving average (blue line), indicating continued buying interest.
Current Consolidation: The price is moving sideways near 1.0844 (Point of Control - POC), suggesting accumulation before a potential breakout or breakdown.
2. Key Support & Resistance Levels
Immediate Resistance: 1.0885 - 1.0900 (recent highs).
Immediate Support: 1.0844 (POC level) – a crucial liquidity zone.
Stronger Support: 1.0800 (psychological level and near the moving average).
Upside Targets: 1.1000 - 1.1100 (upper channel projection).
3. Volume Analysis
Last 120 Bars Volume: Up Vol > Down Vol by 37.23%, indicating strong bullish dominance.
Last 60 Bars Volume: Up Vol > Down Vol by 3.44%, showing that buyers are still in control, but with less dominance than the broader trend.
4. Chart Patterns & Projections
The projected path (blue and red channels) suggests two scenarios:
Bullish breakout above 1.0900, with a move toward 1.1000 - 1.1100.
Bearish breakdown below 1.0840, leading to a retracement toward 1.0700 - 1.0600.
Trade Setups & Risk Management
1. Long Trade Setup (Bullish Scenario)
Entry: Buy on breakout above 1.0900.
Stop-Loss: Below 1.0840 (previous support).
Targets:
First Target: 1.1000 (psychological level).
Final Target: 1.1100 (upper channel boundary).
Risk-Reward Ratio: 1:3 or better.
2. Short Trade Setup (Bearish Breakdown Scenario)
Entry: Sell below 1.0840 (confirmed breakdown).
Stop-Loss: Above 1.0900.
Targets:
First Target: 1.0700 (mid-channel support).
Final Target: 1.0600 (lower channel boundary).
Risk-Reward Ratio: 1:2 or better.