- December 16, 2025
- Posted by: EWGFX
- Category: Technical analysis
EURUSD continues to trade within a well-defined bullish recovery structure on the daily timeframe. Following the November sell-off, price established a sequence of higher lows, supported by a rising trendline that remains technically intact. This confirms that the broader directional bias has shifted from corrective to constructive.
Market Structure & Trend
Price is currently advancing in an impulsive leg, respecting the ascending trendline drawn from the November lows. The market has transitioned from a distribution phase into trend resumption, with buyers maintaining control of structure despite short-term pauses.
This behavior is consistent with traditional market theory: higher lows signal accumulation, while pullbacks remain corrective rather than distributive.
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Key Price Zones
Upper Resistance / Supply Zone (Red Area):
This zone represents a prior distribution area where price previously faced aggressive selling pressure. The current reaction at this level is technically normal and does not invalidate the bullish structure. Consolidation or minor rejection here would be expected before any sustainable continuation.
Support / Demand Zones (Blue Areas):
The marked blue zones highlight former resistance that has now transitioned into support and re-accumulation areas. These levels align with the rising trendline and represent structurally favorable locations for bullish continuation should price pull back.
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Volume Context
Recent bullish candles were accompanied by increased volume, confirming initiative buying rather than low-quality retail participation. Importantly, there is no evidence of climax selling at resistance. Volume behavior suggests controlled profit-taking, not distribution.
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Outlook & Scenarios
Primary Scenario (Bullish Continuation):
If price holds above the highlighted demand zones and the ascending trendline, EURUSD is likely to resume its advance and attempt a clean break above the resistance zone. Acceptance above this level would open the path toward higher daily targets.
Alternative Scenario (Healthy Pullback):
A rejection from resistance may result in a pullback into the blue support zones. As long as price maintains higher lows and respects structure, such a move would be considered a technical reset, not a trend reversal.