The EUR/USD pair has experienced a pullback from the 1.1008 resistance level, extending as low as 1.0881. However, as long as the price remains above the 1.0870 support, this pullback can be treated as a correction within the broader uptrend from 1.0665. Let’s take a closer look at the key levels and potential scenarios for the pair.
Key Levels to Watch
- Resistance Levels:
- Initial resistance: 1.0945
- Break above 1.0945 could trigger another rise towards 1.1008
- Above 1.1008: Aim for 1.1050, followed by 1.1100 area
- Support Levels:
- Initial support: 1.0900
- Break below 1.0900 could lead to a test of 1.0870 support
- Below 1.0870: Aim for 1.0820 area
Potential Scenarios
- Bullish Scenario:
- If the price remains above 1.0870, the pullback from 1.1008 can be seen as a correction within the uptrend from 1.0665.
- A break above 1.0945 could open the door for another test of the 1.1008 resistance.
- A successful break above 1.1008 could extend gains towards 1.1050 and potentially 1.1100.
- Bearish Scenario:
- A breakdown below 1.0900 would be a bearish signal, potentially leading to a test of the 1.0870 support.
- If 1.0870 is breached, the pair could extend losses towards the 1.0820 area.
Conclusion
The EUR/USD pair is currently consolidating after its recent pullback from 1.1008. As long as the price holds above the 1.0870 support, the uptrend from 1.0665 remains intact. Traders should closely monitor the 1.0945 resistance level, as a break above it could signal the resumption of the upward move. However, a breakdown below 1.0900 and 1.0870 would be a bearish development, potentially leading to further declines.
Remember to always use proper risk management techniques and consider multiple timeframes when making trading decisions based on this analysis.