The EURUSD surged to its highest level since February 2022 on Friday, reaching a peak of 1.1473. That high came up just short of the key resistance zone between 1.1482 and 1.1516—a swing area that capped gains in early 2022. After failing to break that ceiling, the pair rotated lower, finding support at a critical confluence of technical levels.

Friday’s pullback bottomed at 1.12738, a zone packed with significance. That level sits just above the 38.2% retracement of last week’s strong rally at 1.12495, and more importantly, aligns with both the July 2023 high at 1.1275 and the 61.8% retracement of the entire 2020–2022 decline at 1.1270. This 1.1270–1.1275 support area is pivotal. Holding above it keeps the short-term bullish bias intact. Break below, and sellers may start to build confidence, especially if the price slips further beneath the 38.2% retracement on the hourly chart.

Buyers and sellers are clearly locked in a tug-of-war near these elevated levels. However, the broader technical bias still leans in favor of the bulls. Last week’s breakout pushed the pair above the July 2023 high, and that level continues to act as a floor. For sellers to truly seize control, they must break—and hold—below the 1.1270–1.1275 zone. Until then, the technical advantage remains with the buyers.