The EUR/USD pair is showing signs of stabilization after recent volatility, with markets gradually recovering and gold prices gaining momentum. The previously ignored 1.1605 level has now been removed, suggesting a shift in short-term sentiment. At present, the euro is consolidating within a defined range between the 1.1495 support and the MACD line on the daily chart.
Despite this stabilization, the technical backdrop remains cautious. The pair continues to trade below both descending indicator lines, while the Marlin oscillator holds steady in bearish territory, indicating that downside pressure persists. If the price declines below Friday’s low at 1.1543, it would confirm a continuation of the downward move that began on September 17, targeting key support at 1.1495.
Alternatively, a breakout above yesterday’s high could mark the start of a corrective recovery, with the next bullish target set at the MA line near 1.1662.
On the four-hour timeframe, the outlook appears slightly more optimistic. The Marlin oscillator is attempting to cross above the neutral line, hinting at a potential shift in momentum. This could strengthen buying interest, particularly if the pair successfully breaks through the 1.1627 resistance a level that aligns closely with the MACD line and yesterday’s high.
In summary, while short-term technical show early signs of recovery, the broader trend remains bearish until the euro confirms a sustained move above 1.1660. Traders should watch for a break below 1.1543 for renewed selling pressure or a decisive move above 1.1627 to signal bullish intent.
