EURUSD Technical Analysis: Bullish Momentum Above 1.1787
Market Overview
The EURUSD pair continues to demonstrate solid bullish momentum as we head into Tuesday’s trading session. Following yesterday’s strong close at 1.17870, the euro has established itself in a constructive technical position with multiple bullish signals emerging from the daily chart.
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EURUSD: 1.17870 (Close - April 20)
The euro closed Monday with a decisive bullish candle, gaining approximately 31 pips from its opening at 1.17580. The pair tested intraday highs at 1.17900 while holding above the 1.17260 support level, indicating strong buyer participation throughout the session.
Over the past five trading days, EURUSD has established an uptrend, with the pair recovering from lows near 1.1661 (April 13) to current levels. This represents a meaningful 121-pip rally that suggests strengthening euro demand.
GBPUSD & USDJPY Correlation:
While specific data wasn’t provided for today’s close, traders should monitor GBP and JPY pairs for divergence signals. Sterling strength often precedes or confirms euro momentum, while yen weakness typically supports risk appetite—a tailwind for EURUSD appreciation.
Technical Analysis
Support & Resistance Levels:
- Resistance: 1.18480 (recent swing high from April 17)
- Key Level: 1.17870 (Monday’s close and immediate support)
- Support: 1.17600 (previous consolidation zone)
- Strong Support: 1.17260 (Monday’s intraday low)
Technical Observations:
Trend Structure: EURUSD has formed a series of higher lows over the past week, confirming an uptrend. The pair is trading above all major moving averages on daily timeframes.
Momentum: Monday’s close above 1.1787 with a solid green candle suggests bullish conviction. Volume participation appears healthy based on price action extension.
Chart Pattern: The recent consolidation between 1.1760-1.1787 acts as a breakout level. A sustained move above 1.1848 could trigger additional buying toward 1.1900.
Economic Events to Watch
Today & This Week:
- US Housing Starts & Permits – Expected mid-week; impacts USD demand
- ECB Speakers – Monitor for hawkish/dovish commentary
- Crude Oil Inventory Data – May influence risk sentiment affecting euro
These data releases could add volatility to intraday trading around our key levels.
Trading Outlook
The bias remains bullish above 1.17600 support. Breakout traders can target 1.18480 resistance with a stop below 1.1726. Range traders should seek buys at 1.1760-1.1770 with resistance targets near 1.1830.
Risk Management Critical: Position sizing should account for potential economic data volatility this week.
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This analysis is for educational purposes only and does not constitute financial advice. Trading forex carries significant risk. Past performance is not indicative of future results.