EUR/USD prints a nine-day rally, signs of exhaustion emerge

EUR/USD has posted nine consecutive bullish daily candles, with today’s session beginning to show early signs of fatigue. After a strong impulse move through the 1.1700 resistance zone, momentum appears to be slowing, and the current daily candle is printing with a bearish bias. This suggests that the pair may be due for a pullback or consolidation before the next leg higher.

On the 4-hour chart, we’re watching three key levels of interest. First, the exponential moving averages, with the 20 EMA (white) and 50 EMA (blue), are often dynamic support zones during strong trending conditions. If momentum remains intact, the 4-hour 20 EMA could act as the first area where bulls look to defend.

Should the local trend begin to break, the 4-hour 50 EMA may become the next support zone. Below that, the 1.1600 area stands out as a key high time frame level. This zone aligns closely with the 0.618 Fibonacci retracement of the recent impulse move and could provide a solid base if price retraces more deeply.

Zooming into the 1-hour chart, two levels are worth monitoring. Level 1 sits at 1.17750, where the 1-hour 50 EMA aligns with horizontal support. If this level holds, the short-term structure remains bullish. However, a breakdown here would shift focus to level 2 near 1.17400, a local support that could act as the final line of defence before the pair targets the 1.1600 zone discussed above.

With the pair overextended after a sharp rally, a short-term cooldown remains possible. Bulls will be watching how price reacts at these support levels to assess whether this is a minor pullback or the beginning of a broader retracement.

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