The EURUSD currency pair has broken out above the resistance of the falling price channel visible on the 4-hour chart. This technical breakout suggests that the recent pullback from the 1.0894 high has likely completed at the 1.0804 low.
Further Upside Potential Emerges
Following the breakout above the bearish channel resistance, further upside follow-through in the EURUSD appears likely over the coming days. The first key resistance level to watch on the topside is the 1.0894 previous high.If buyers can push the pair above 1.0894, it could potentially signal the resumption of the broader uptrend that originated from the 1.0600 low, with the next targets located in the 1.0940 and 1.1000 areas.
Key Support at 1.0840
While the technical outlook has shifted to a more bullish bias, traders will want to keep a close eye on the 1.0840 area as initial support. A breakdown below this level could see the EURUSD retrace back toward the 1.0804 support zone.However, only a move below 1.0804 would likely confirm that the upside move from 1.0600 has completed at the 1.0894 high.In this scenario, the next key downside target would be the 1.0700 area.
Levels to Watch
For now, the key levels to watch in the EURUSD are the 1.0894, 1.0940, and 1.1000 resistance levels, along with the 1.0840, 1.0804, and 1.0700 support areas.
As long as the pair remains above 1.0840 support, the near-term technical bias will remain tilted to the upside, with the potential for a continuation move toward the 1.0940 and 1.1000 resistance levels.
However, a breakdown below 1.0840 and 1.0804 would likely signal a bearish reversal, with the potential for a deeper pullback toward the 1.0700 support.
The EURUSD has shifted to a more bullish technical outlook after the recent breakout above channel resistance. While further gains appear likely, traders will want to closely monitor the key support levels for potential signs that the upside momentum could be stalling.