EURUSD Long: Rally Continues in Ascending Channel

[Antony Bishop]

Hello, traders! The prior price auction for EURUSD was dominated by a wide consolidation range, bounded by the demand zone 2. Within this range, a new bullish structure began to form as an ascending channel, which eventually gathered enough momentum to break out and confirm a new uptrend, shifting market control to the buyers.

Currently, the price action continues to be guided by this ascending channel. Following a recent test of the upper price levels, the market has entered a corrective phase. The auction is now pulling back towards a significant confluence of support, located near the 1.1740 DEMAND level, which also aligns with the channel's dynamic support line.

My scenario for the development of events is a continuation of the uptrend after this correction completes. I expect the price to find strong support at the confluence of the channel's demand line and the 1.1740 - 1.1760 DEMAND ZONE. In my opinion, a confirmed bounce from this area will signal the end of the pullback and trigger the next impulsive move higher. The take-profit is therefore set at 1.1865, an intermediate target within the channel's structure. Manage your risk!

[kelson10]

Nice structure here EURUSD holding above 1.1740 demand + channel support could set up the next leg higher if buyers step in.