Euro Keeps Its Bullish Signals Alive Amid Headwinds 16/6/2026

EUR/USD Technical Analysis

The EUR/USD pair exhibited a modest downward bias across recent trading sessions after encountering pivotal resistance in the vicinity of 1.1630 — a development that prompted a temporary corrective move within the broader uptrend.

Technical Outlook – 4-Hour Timeframe:

On the short-term horizon, the Relative Strength Index (RSI) has flashed negative signals after previously pushing into overbought territory — a configuration that suggests the current pullback represents a natural process of unwinding overbought conditions and rebuilding the momentum required to resume the uptrend.

On the constructive side, the pair remains anchored above the 50-period simple moving average, which continues to provide underlying support. Adding to the positive picture, a bullish double-bottom pattern is taking shape on the chart — a technical formation that lends weight to the probability of a resumption of the uptrend over the near term.

Taken as a whole, the technical outlook remains constructive as long as trading holds above the key support floors.

Expected Scenarios:

Bullish (Most Likely) Scenario:

As long as trading remains anchored above the 1.1550 support floor, the prospects of a resumption of the uptrend will remain firmly on the table — particularly should the price confirm a decisive break above 1.1630 and sustain trading above it — with targets set at:

• 1.1655 as the initial objective
• Followed by 1.1700 as the subsequent target

Bearish Scenario:

Conversely, a confirmed hourly candle close beneath 1.1540 would expose the pair to renewed negative pressure, with:

• 1.1500 emerging as the initial downside target
• Followed by 1.1470 as the subsequent level

• Risk Disclaimer: Trading CFDs involves risks, and therefore the scenarios outlined above are not a recommendation to sell or buy but rather an explanatory reading of price movement on the chart.

S1: 1.1510	R1: 1.1600
S2: 1.1470	R2: 1.1630
S3: 1.1420	R3: 1.1665