EUR/USD is currently navigating a critical technical area around 1.127, a level that served as key support in late April and has since turned into a major resistance following the breakout. This orange horizontal resistance has already been tested three times in May, and although the price remains below, the buying pressure is visibly increasing.
A notable bullish development is the breakout above the red downtrend line, suggesting that bears are losing momentum. Additionally, the blue uptrend line, which has been recently defended, continues to support the buyers, adding weight to the bullish case.
However, for a confirmed long-term buy signal, traders should wait for a H4 candle close above 1.127. That breakout would confirm a shift in sentiment and open the path for further upside.
Until then, the setup remains in watch-and-wait territory, but the bullish potential is building with each test of resistance.