EUR/USD has pulled back from its recent high of 1.1173, breaking below the 1.1100 support level. This suggests that the pair is entering a consolidation phase within its broader uptrend that began at 1.0777.
What to Watch Next
- Potential for Further Decline:
- A further decline is possible in the coming days, with the target being the rising trend line on the 4-hour chart.
- Uptrend Outlook:
- As long as the trend line support holds, the uptrend could resume.
- A breakout above the 1.1173 resistance could lead to another rise, targeting the 1.1200 resistance level.
- If the price moves above 1.1200, the next target would be around the 1.1250 area.
- Key Risk:
- A breakdown below the trend line support would signal the potential end of the current uptrend.
Conclusion
EUR/USD is currently in a consolidation phase, but the overall uptrend remains intact as long as the trend line support holds. Traders should watch for a potential breakout above 1.1173, which could lead to further gains toward 1.1200 and 1.1250. However, a break below the trend line would suggest a shift in the trend.