EURUSD Breaks Free From the Downtrend

Wait 5 sec.

EURUSD Breaks Free From the DowntrendEUR/USDOANDA:EURUSDGoldenPearl_tradEURUSD has just broken above the descending trendline that kept price under pressure for an extended period. This is an important shift, because the trendline was not merely a line on the chart—it was the area where previous rallies repeatedly ran into sellers. The market has now given us its first answer: buyers have cleared the barrier. The more important question, however, is whether they can hold what they have gained. Here is the key point: A breakout is not confirmed simply because price trades above resistance for one candle. It becomes more credible when price pulls back to test the level and sellers fail to push the market back into the old structure. That reaction tells us whether the move is genuine or just a liquidity sweep. If EURUSD stays above the broken trendline and the newly established base, the breakout could open the door to a fresh bullish phase. In that case, 1.1800 becomes a reasonable target, as it is the next key resistance area on the H12 chart. On the other hand, if price quickly moves back below the trendline and closes there, the recent buying pressure would come into question. That does not automatically mean a sharp decline, but it would show that buyers have not fully taken control yet. Remember: A broken trendline suggests the previous trend may be losing validity. But only when former resistance turns into support does the market truly confirm a new bullish structure. This is a personal market view, not financial advice.