The EURUSD pair has just achieved a significant milestone by breaking above the critical resistance level of 1.1173. This breakthrough has propelled the currency pair to new heights, extending its upward trajectory that began at 1.0881 and reaching an impressive peak of 1.1201.
Technical Analysis: The Rising Channel
A key feature of this bullish move is the rising price channel visible on the 4-hour chart. This pattern is crucial for traders to monitor, as it provides valuable insights into potential future price action.
Bullish Scenario
As long as the EURUSD price remains within this ascending channel, we can anticipate further upside movement. Here are the key levels to watch:
- Next Target: The 1.1300 area stands out as the immediate goal for bulls.
- Extended Target: If momentum persists, we could see a push towards the 1.1450 region.
Support Levels to Monitor
While the trend is bullish, prudent traders always keep an eye on potential support levels:
- Initial Support: Watch the 1.1160 level closely. This could act as a springboard for further upward movement.
- Channel Bottom: If 1.1160 fails to hold, the price might retreat towards the lower boundary of the rising channel.
- Key Support: The 1.1097 level is crucial. A break below this could signal a potential end to the current uptrend from 1.0881.
Conclusion
The EURUSD pair is showing strong bullish momentum, having broken a key resistance level and continuing its upward march. While the trend remains positive as long as the price stays within the rising channel, smart traders will keep a close eye on crucial support levels for any signs of weakness.