The EURUSD currency pair has shown resilience in maintaining its uptrend, remaining above a rising trend line on the 4-hour chart. The pair’s upward movement from 1.0635 has been notable, with recent price action indicating a pullback from the high of 1.0970. This pullback can be viewed as a period of consolidation within the broader uptrend.
As long as the trend line support holds, the uptrend in EURUSD is expected to resume. Traders will closely watch for a breakout above the 1.0970 resistance level, which could serve as a catalyst for another leg up towards the previous high at 1.1095. A successful breach of this level would validate the strength of the ongoing uptrend and potentially open the door for further gains.
Conversely, a breakdown below the rising trend line would suggest a potential completion of the upside move at 1.0970. In such a scenario, the pair may find support around the 1.0830 level, followed by a secondary support zone near 1.0770. These levels should be monitored closely as potential areas where buyers could re-enter the market and seek to stabilize the pair.
Traders should be mindful of the importance of technical levels and trend lines in guiding their trading decisions. The rising trend line acts as a key support level, validating the bullish bias as long as it remains intact. It is crucial to wait for confirmation through a breakout or breakdown before considering entry or exit positions.
In summary, EURUSD remains in an uptrend, staying above a rising trend line on the 4-hour chart. The pullback from 1.0970 is viewed as a consolidation phase within the broader uptrend. A breakout above 1.0970 would signal the potential resumption of the uptrend, with the next target at 1.1095. However, a breakdown below the trend line support would indicate a possible completion of the upside move. In such a case, support levels to watch for are around 1.0830 and 1.0770. Traders should consider a comprehensive analysis of technical and fundamental factors to make well-informed trading decisions.
