Euro Technical Analysis – Daily Timeframe
In the daily timeframe, the euro has entered an ascending channel and, following a break of the $1.097 level, has reached the upper boundary of the daily channel (around the $1.12 price level). As observed, the $1.10 demand order block, highlighted by the blue box, can be considered a support area, from which the euro has made a significant rebound.
Euro Technical Analysis – 1-Hour Timeframe
Upon reaching the upper boundary of the daily channel, the euro has entered a corrective phase and is now oscillating within a descending channel. Currently, the EUR/USD pair has reached the upper boundary of the descending channel, approximately at the $1.10 price level in the 1-hour timeframe. The confluence of the $1.11 supply order block with the upper boundary of the 1-hour descending channel could result in the euro continuing its downward movement toward the lower of the channel.
If the euro is able to decisively break upward through the upper boundary of the descending channel and the blue supply area, we can expect a price increase once again toward the upper boundary of the daily timeframe channel. Otherwise, we will likely witness a correction of the euro to lower price levels.