EUR/USD Tests Key Resistance: What’s Next?

EUR/USD is currently testing the key resistance level at 1.1100, a pivotal point for its next move.

Potential Scenarios:

  • Consolidation and Downtrend Continuation:
    • As long as the 1.1100 resistance holds, the recent bounce from 1.1026 could be viewed as consolidation within the broader downtrend from 1.1201.
    • If the price fails to break above 1.1100, another fall is likely after this consolidation phase.
  • Key Support Levels:
    • Initial support is at 1.1065.
    • A break below this level could trigger a decline toward 1.1026, with the next target around the 1.1000 area.
  • Upside Potential:
    • On the other hand, a breakout above the 1.1100 resistance would signal the end of the downtrend from 1.1201, confirming that the move down has completed at 1.1026.
    • The next target in this scenario would be the 1.1140 resistance level.

Conclusion:

EUR/USD is at a critical juncture. A break below 1.1065 could lead to further declines, while a breakout above 1.1100 could reverse the recent downtrend. Traders should keep a close watch on these key levels to gauge the pair’s next move.