EUR/USD: Sideways Accumulation – Awaiting a Breakout?

EUR/USD is testing the key resistance zone around 1.04788, where it converges with a long-term descending trendline. If the price gets rejected here, it may pull back to the 1.03961 support area for accumulation before attempting another rebound.

The market structure remains uncertain for a breakout, but if the price holds above support, EUR/USD could form a recovery pattern, aiming for higher levels.

Trading Strategy:
Sell if price gets rejected at 1.04788, target 1.03961, stop-loss above 1.05000.
Buy around 1.03961 if strong bullish reaction occurs, target 1.04788, stop-loss below 1.03750.
Wait for confirmation of a breakout above 1.04788 to enter a long position.

Beyond technical factors, the EU summit on military and financial aid for Ukraine could significantly impact EUR. If strong financial support is confirmed, EUR may strengthen, supporting EUR/USD recovery. Conversely, political uncertainty could weaken the euro further.