EUR/USD is recovering from a downtrend

The hourly chart of EUR/USD shows a recovery after the downward trend that formed from the end of April to the beginning of May. In recent sessions, the price has been able to gain a foothold above the 1.1325 support level and is approaching resistance around 1.1380, which indicates growing bullish activity. The current quote is near 1.1365, slightly above the MA (200) H1 moving average, which confirms a short-term reversal in favor of buyers. The MACD indicator shows positive values, while the histogram is growing, which indicates a continuing upward momentum. However, the signal line remains close to the zero level, which may indicate the approach of the overbought zone and a potential correction near the resistance of 1.1380. If EUR/USD can break through and stay above 1.1380, this will confirm the strength of the current upward movement with a possible test of the 1.1430-40 zone. Otherwise, we can expect a pullback to 1.1325, where the bulls may be active again.

Resistance levels are: 1.1380, 1.1430-40, 1.1470

Support levels are: 1.1325, 1.1265, 1.1145

The main scenario of the pair's advance implies a breakout of the resistance of 1.1380 (May 2 and 6 high) and there may be an increase to 1.1430-40 (April 24 and 28 highs)

An alternative scenario assumes a breakout of the session low of 1.1325 and there may be a decline to 1.1265 (April 15 and May 1 low)