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.