EURUSD | Bullish Breakout & Bullish Continuation Setup

#EUR/USD#

# EURUSD | Bullish Breakout & Bullish Continuation Setup

### Fundamental View

EURUSD is attempting a bullish recovery following its recent decline, supported by a pullback in the US dollar and easing US Treasury yields. On October 15, the dollar retreated from its recent highs as Treasury yields fell and cautious Federal Reserve commentary reduced some expectations for an immediate rate hike. This helped the euro rebound from its recent lows. However, stronger-than-expected US inflation data and uncertainty surrounding future Fed policy could still create volatility.

### Technical View

On the 1-hour chart, EURUSD has rebounded sharply after sweeping sell-side liquidity near the 1.1110–1.1120 area. Price has recovered above the rising trendline and is trading around 1.1217, suggesting a potential short-term bullish shift.

The next key resistance is 1.12442. A confirmed breakout above this level could open the way toward 1.12685, the first projected target shown on the chart. If bullish momentum continues and price clears the 1.12712 resistance area, the next broader target is 1.13226.

### SMC View

The sharp rejection from the recent lows suggests that sell-side liquidity may have been swept before buyers stepped in. The subsequent bullish displacement and recovery above the rising trendline support the possibility of continued upside.

However, price must sustain its recovery and overcome nearby resistance. A clean breakout followed by a successful retest would strengthen the bullish scenario, while rejection could lead to a pullback toward the 1.11769 support zone.

### This Move Is Supported By

- A pullback in the US dollar, supporting EURUSD's recovery.
- Declining US Treasury yields, easing some upward pressure on the greenback.
- A strong rebound after the recent sell-side liquidity sweep.
- Recovery above the rising trendline, suggesting improving short-term momentum.
- Potential bullish continuation if resistance breaks and buyers maintain control.

These factors support the bullish scenario, but confirmation from price action remains essential.

### Key Levels to Watch

Resistance 1: 1.12442
Resistance 2: 1.12712
Support: 1.11769
Invalidation: 1.11550

Target 1: 1.12685
Target 2: 1.13226

### Trading Scenario

Bullish scenario: If EURUSD maintains support above 1.11769 and breaks above 1.12442, the first projected target is 1.12685. A sustained move above 1.12712 could strengthen the bullish continuation setup toward 1.13226.

Bearish risk: If price fails to break resistance and falls below 1.11769, the recovery could weaken. A decisive move below 1.11550 would invalidate this bullish setup and increase the risk of renewed downside.

### Risk Management

- Wait for a confirmed breakout or successful retest before considering a trade.
- Define entry, stop-loss, and position size in advance.
- Treat 1.11550 as the stated technical invalidation level for this setup.
- Be cautious around major US economic releases, as volatility and slippage may increase.
- Avoid chasing sharp price movements without confirmation.

### Professional Insights

EURUSD is showing signs of a short-term bullish recovery after sweeping liquidity below the recent lows. The key test is whether buyers can break above 1.12442 and sustain momentum through 1.12712. If confirmed, the projected upside target at 1.13226 may come into focus. Monitor the US dollar, Treasury yields, and upcoming economic data for further direction.

### Disclaimer

This analysis is for educational purposes only and does not constitute financial advice. All scenarios are conditional. Always apply disciplined risk management and make trading decisions based on your own assessment.