FX.co ★ HAPPY KILLER | EUR/USD

EUR/USD H1 Timeframe Analysis 23 February 2026 The EURUSD pair on the H1 timeframe exhibits a classic V-shaped recovery following a sustained downtrend that began around February 12th. Initially, the price followed a bearish trajectory, characterized by lower highs and lower lows, remaining consistently below the Moving Average (MA)—indicated by the red line. This bearish phase reached its climax on February 19th and 20th, with the price dipping into the 1.1750 support zone. However, the final sessions shown on the chart reveal a sharp, aggressive bullish reversal. A massive bullish engulfing-style momentum candle has propelled the price back above the moving average and through a significant resistance-turned-support level at 1.1822. The steepness of this ascent suggests strong institutional buying or a short-squeeze event. The price is currently testing the 1.1830–1.1840 area, which previously acted as a consolidation floor during the earlier downtrend. The moving average is now beginning to curl upward, signaling a potential shift in the short-term trend from bearish to bullish. While the primary trend over the last 10 days has been down, this impulsive breakout suggests that the bottom may be in, and the market is now looking to retest higher liquidity pools near 1.1870. Trade Setup: The Break and Retest. Given the recent impulsive move, a direct entry here carries high risk due to the potential for a mean reversion back to the moving average. The most conservative play is a long position on a corrective pullback. Long Setup Details • Entry Zone: 1.1815 - 1.1825. Wait for a minor retracement to the blue horizontal line (previous resistance) to confirm it now holds as support. • Stop Loss: Below the recent swing low or the moving average support, approximately at 1.1785. • Take Profit 1: 1.1870 (The next major structural resistance seen on Feb 16th). • Take Profit 2: 1.1890 (The high from Feb 12th). Summary: The sentiment has shifted from Bearish to Cautiously Bullish. The key is to see if the H1 candle can close and hold above 1.1822. If the price fails to sustain this level and drops back below the moving average, the recent spike may be a bull trap, and the downtrend could resume toward 1.1735.