EUR/USD Outlook: Bulls Eye Key Support Zone

The euro-dollar pair is staging a notable recovery after clearing downside liquidity, and market participants are now focused on a pivotal technical area. The question on everyone’s mind: can the current support structure hold and fuel additional upside?

Technical Picture

As trader SIRRILLAH noted, “EUR/USD 4h Outlook: Currently looking bullish. Price may continue higher if it confirms the OB as valid support.”

The 4-hour chart reveals several compelling elements. EUR/USD swept sell-side liquidity before reversing upward—a classic sign that stops below have been triggered. Price is now consolidating within an imbalance zone (marked in orange), suggesting buyers are actively absorbing available supply. Just above sits a fresh order block whose defense will be critical for bulls looking to push higher. If this support holds firm, buy-side liquidity at elevated levels becomes the logical next target.

Macro Backdrop

Beyond the charts, broader market forces are playing their part. The European Central Bank’s careful stance on inflation and growth continues shaping euro sentiment, while softer U.S. economic data has taken some wind out of the dollar’s sails. Meanwhile, improved risk appetite across markets is providing indirect support to the euro.