The weekly M-formation is not being observed by the bulls.
EUR/USD is in a downward trend since May 2021. It has fallen below the 200 DMA from late June to mid-June last year. The price fell to 1.07573 or about the 2020 April support area. This area is a key demand area, as it was the catalyst for the May 2020-Jan 2030 rally.
Daily chart EUR/USD
This level of support would have been expected to cause a correction, and that is what we are beginning to see in today's price action.
EUR/USD's Doji candle is followed by a bullish engulfing candles. This formation is a bullish candlestick that has removed the prior support on closing basis.
The M-formation, a bullish feature in the charts, is viewed from a weekly perspective.
This is a reversion trend and the price should revert to test the old lows (the neckline). The neckline in this scenario is the 50% average reversion level.