On the 4-hour timeframe, the EUR/USD pair has shown a strong bullish reaction after entering the key 1.1550–1.1580 demand zone (green box).
As seen on the chart, buyers stepped in aggressively at this area, forming bullish reversal candles that indicate renewed buying pressure from this support region.
This zone has acted as a strong support level in the past and could once again play a significant role in determining the next market direction.
Bullish Scenario
If the price holds above 1.1580 and successfully consolidates above 1.1620, we could see further upside toward the 1.1650–1.1670 resistance area (red box).
A clear breakout and confirmation above this resistance may open the way for a continuation toward 1.1720.
Technically, a break of the short-term bearish structure and formation of a higher low would be an early sign of a potential trend reversal to the upside.
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Bearish Scenario
If the price fails to break 1.1650 and falls back below 1.1600, a retest of the 1.1560 demand area becomes likely.
A confirmed breakdown below this zone could accelerate bearish momentum toward 1.1500 or even lower levels.
This scenario would be supported if the U.S. Dollar Index (DXY) continues to strengthen and U.S. economic data comes out better than expected.
Summary
Currently, EUR/USD is in a corrective phase after a prolonged bearish trend.
The green zone remains the key demand area, while the red zone acts as a critical resistance that will determine the next move.
As long as the price trades below 1.1650, the outlook stays neutral to bearish.
However, a confirmed breakout above this level could trigger a new bullish wave with potential for higher highs.
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