The Euro/US Dollar (EURUSD) pair has shown some interesting movements recently. Let’s break down the current situation and potential scenarios based on the 4-hour chart analysis.
Recent Developments
- EURUSD has broken below the rising price channel on the 4-hour chart.
- The pair is currently testing a crucial support level at 1.0871.
Bearish Scenario
If EURUSD breaks below the 1.0871 support:
- It would suggest that the upward movement from 1.0665 has peaked at 1.0948.
- The next target levels would be:
- 1.0830
- 1.0800 area
Bullish Scenario
As long as the 1.0800 support holds:
- The upward movement from 1.0665 could potentially resume.
- Another rise towards 1.1000 remains possible.
Key Levels to Watch
Support Levels
- Critical support: 1.0871
- Strong support: 1.0800
Resistance Levels
- Initial resistance: 1.0910
- Previous high: 1.0948
- Psychological level: 1.1000
Potential Upside Movement
If EURUSD breaks above the initial resistance:
- It could trigger another rise to test the previous high of 1.0948.
- A break above 1.0948 would target the psychologically important 1.1000 level.
Conclusion
The EURUSD pair is at a critical juncture. Traders should closely monitor the key support and resistance levels mentioned above. The break of 1.0871 could signal a bearish trend, while holding above 1.0800 keeps the bullish scenario alive. As always, use proper risk management and stay informed about market conditions before making trading decisions.