The EUR/USD pair has been trading in a tight range between 1.0825 and 1.0870 for several days, suggesting a period of consolidation. Let’s break down the key levels and potential scenarios for traders to watch.
Current Situation
- EUR/USD is currently facing resistance at 1.0870
- The pair has been range-bound between 1.0825 and 1.0870
Bullish Scenario
If EUR/USD breaks above the 1.0870 resistance, it could signal the completion of the downward move from 1.0948. In this case, traders should watch for the following targets:
- Initial target: 1.0900 area
- Secondary target: 1.0920 area
A breakout above 1.0870 could trigger a new upward trend, potentially reversing the recent bearish momentum.
Bearish Scenario
On the downside, key levels to watch include:
- Initial support: 1.0840
- Critical support: 1.0825
- Next target if 1.0825 breaks: 1.0800 area
If EUR/USD breaks below 1.0840, it could lead to further downside movement, potentially retesting the 1.0825 support level.
Key Levels to Watch
- Resistance: 1.0870
- Support: 1.0840, 1.0825
- Upside targets: 1.0900, 1.0920
- Downside target: 1.0800
Conclusion
EUR/USD is at a critical juncture, with the potential for a significant move in either direction. Traders should closely monitor the 1.0870 resistance and 1.0840 support levels for clues about the pair’s next directional move. A breakout above 1.0870 could signal a bullish trend reversal, while a breakdown below 1.0840 might confirm the continuation of the recent downtrend.
Remember to use proper risk management techniques and consider multiple timeframes when making trading decisions based on this analysis.