EUR/USD Technical Analysis: Potential for Upward Movement After Recent Dip

The EUR/USD pair has shown price action recently, suggesting a possible shift in short-term trends. Let’s break down the key levels and potential scenarios for traders to watch.

Recent Price Action

  • Support found above 1.0890
  • Resistance encountered below 1.1010

This pattern indicates that after a short-term decline, EUR/USD may be poised for an upward movement.

Key Levels to Watch

  1. Resistance Levels:
    • Short-term resistance: 1.1010-1.1015
    • Significant resistance: 1.1070
  2. Support Levels:
    • Short-term support: 1.0890
    • Important support: 1.0840

Potential Bullish Scenario

If EUR/USD stabilizes above 1.0890 today, we could see a rally targeting the 1.1100 area. This move would confirm the bullish outlook following the recent dip.

Conclusion

The EUR/USD pair is at a critical juncture. While it has experienced a short-term decline, there is potential for an upward movement if it can hold above key support levels. Traders should keep a close eye on the 1.0890 support and the 1.1010 resistance to gauge the next moves in the market.

Remember to always use proper risk management techniques and consider multiple timeframes when making trading decisions based on this analysis.