EURUSD appears to be forming a double bottom pattern on its short-term chart, as price carved out two successive troughs near the 1.1750 minor psychological level before bouncing back toward the neckline resistance around 1.1820.

The pair is currently trading at 1.1820, suggesting that buyers are making a concerted effort to push above this key inflection point and confirm a potential trend reversal.

A decisive break and close above the neckline could validate the double bottom formation and open the door to a measured move higher. The projected target from the pattern would bring EURUSD back toward the swing highs around the major psychological 1.1900 mark with further upside possibly extending to the highs seen earlier in the month near the 1.1920 area.

The blue shaded zone around 1.1800–1.1820 is now the critical area to watch, as it needs to hold as support on any retest to keep the bullish scenario intact.

The 100 SMA is below the 200 SMA to suggest that the path of least resistance has been to the downside. However, price has managed to reclaim the 100 SMA dynamic level, which could be an early sign that the tide is beginning to turn. A bullish crossover between the two moving averages would add further confirmation that a more sustained recovery is underway.

Stochastic is climbing toward the overbought zone, reflecting strengthening bullish pressure. If the oscillator manages to hold in the upper region without pulling back sharply, it could signal that buyers are eager to maintain their grip on the pair.

RSI is also heading north and approaching the overbought area, suggesting that bullish momentum is building. Holding above the midpoint would reinforce the case for a break above the neckline and a push toward fresh highs.

EURUSD could take cues from eurozone data, including preliminary CPI and GDP readings from its top economies due on Friday. Indications of improvement could tilt the odds in favor of a more hawkish ECB, possibly leading to gains for the shared currency.