The EUR/USD pair has shown strong bullish momentum, bouncing from 1.0777 to 1.0926. This move has broken above the falling price channel on the 4-hour chart and surpassed the key resistance at 1.0870. This suggests that the downside move from 1.0948 has completed at 1.0777, and the pair is now in an uptrend.
Key Levels and Scenarios
Bullish Scenario:
- The pair is likely to continue its rally in the coming days.
- The next target is the previous high at 1.0948.
- A breakout above 1.0948 would aim for the 1.1000 level.
Support Levels:
- Initial support is at 1.0900.
- A breakdown below this level could indicate consolidation for the uptrend from 1.0777.
- Further support levels to watch are 1.0890 and 1.0865.
Technical Indicators
The Relative Strength Index (RSI) and moving averages are favoring bullish momentum, indicating that the pair could see further gains. However, traders should keep an eye on key support levels to manage risk effectively.
Conclusion
The EUR/USD pair has shown significant strength by breaking above key resistance levels, signaling a potential continuation of the uptrend. Traders should monitor the 1.0948 and 1.1000 levels for further bullish targets, while also keeping an eye on the 1.0900 support level for any signs of consolidation.
Stay tuned for more updates and happy trading!