EUR/USD CHART ANALYSIS IN LONDON SESSION I 12/301. Market Structure & Trend
Short-term Trend: The price is in a recovery phase (bullish bounce). This is supported by a clear ascending trendline connecting the recent higher lows.
Current Position: The price has successfully broken above the POC (1.1775) and is currently testing the VAH (1.1780). This indicates that buyers are attempting to regain control of the market.
2. Volume Profile Analysis
The liquidity clusters suggest a period of tight consolidation and a potential breakout:
VAH zone (1.1780): This is the most critical resistance level at the moment. A clean break above this zone would confirm a strong short-term bullish reversal.
POC zone (1.1775): This level represents the highest traded volume. It now acts as immediate support. Staying above the POC is a very optimistic signal for further upside.
VAL zone (1.1763): The bottom of the value area. If the price falls and closes below this level, the current bullish structure will be invalidated.
3. Potential Scenarios
Scenario A: Breakout & Continuation (Bullish)
If the M30 candle closes firmly above 1.1780 (VAH), the next targets are the 1.1800 - 1.1810 levels.
Strategy: Look for "Buy on Retest" opportunities if the price pulls back to the 1.1775 - 1.1780 area and shows rejection.
Scenario B: Rejection at Resistance (Bearish)
If the price faces heavy selling pressure at the VAH and closes back below 1.1775, it may drop to test the ascending trendline or the VAL (1.1763) to find new demand.
Note: Watch for long upper wicks (rejection candles) near 1.1780 as a sign of selling strength.
4. Summary & "Remember the Goal"
Compared to the XAU/USD chart which showed a heavy sell-off, this EUR/USD chart presents a much more stable and bullish bias.
Key Support: 1.1775 (POC) and the ascending Trendline.
Key Resistance: 1.1780 (VAH).
To stay disciplined with your goal: Only execute trades when you see clear price action confirmation at these VAH or POC boundaries.
