After a period of consolidation, the EURUSD currency pair has broken out above the key 1.0894 resistance level, extending its upside move that originated from the 1.0600 low. The rally has carried the pair as high as 1.0915 in recent trading sessions, suggesting that the broader uptrend has resumed.
Further Upside Targets Emerge
Following the breakout above 1.0894, the next key resistance level to watch on the topside is located in the 1.0960 area.If buyers can push the EURUSD above 1.0960, it would open the door for a potential rally toward the key psychological resistance at 1.1000.
Key Support at 1.0900
While the technical outlook remains constructive, traders will want to keep a close eye on the 1.0900 area as initial support. A breakdown below this level could see the EURUSD retrace back toward the next support in the 1.0880 region.If the 1.0880 support gives way, the next key area of interest would be the rising trendline visible on the 4-hour chart.
Upside Momentum Building
For now, the EURUSD uptrend appears to have regained its footing, with the path of least resistance pointing to further gains toward the 1.0960 and 1.1000 targets as long as the 1.0900 support holds.However, a breakdown below 1.0900 and 1.0880 would be a significant technical event, likely opening the door for a deeper pullback toward the rising 4-hour trendline support.
Levels to Watch
The key levels to watch in the EURUSD are the 1.0960 and 1.1000 upside targets, along with the 1.0900, 1.0880 support areas, and the rising 4-hour trendline support.
As long as the pair remains above 1.0900, the overall technical bias will remain tilted to the upside, with the potential for a continuation move toward the 1.1000 level.
The EURUSD uptrend has resumed after the recent breakout above the 1.0894 resistance. While further gains appear likely, traders will want to closely monitor the key support levels for potential signs that the bullish momentum could be waning.