The EURUSD currency pair has made a bullish technical break by surging above the 1.0689 resistance level. With the pair reaching as high as 1.0713 so far, this move suggests that a corrective rebound within the broader downtrend from the 1.0981 peak is now underway.
With the breakout confirming the corrective upside bias in the near-term, further EURUSD gains could potentially be on the cards over the coming days. The next key target to watch on the topside is the 1.0730 resistance area. A move beyond 1.0730 would likely open the path for an extension toward the 1.0800 handle, followed by a potential test of the falling trendline visible on the 4-hour chart timeframe.
In the near-term, the first meaningful support for EURUSD has arrived at the 1.0655 level. Only a breakdown below 1.0655 would raise concerns about the corrective rebound stalling out. Such a scenario could see the pair revisiting a retest of the 1.0600 support area next.
However, a more significant bearish shift would likely not be anticipated unless EURUSD breaks decisively below the 1.0600 level. A plunge through that former support could potentially signal that the broader downtrend from 1.0981 has resumed, exposing the 1.0550 area as the next key target on the downside.
For now, the technical breakout above 1.0689 resistance has shifted the near-term bias in favor of the bulls targeting further upside toward the 1.0730 and potentially 1.0800 resistance zones. Barring a swift breakdown back below 1.0655 support, the path of least resistance appears to be a continuation higher within the corrective recovery off the recent lows.
EURUSD traders will want to keep a close eye on the price action around the 1.0730 and 1.0800 resistance levels in the coming sessions. The ability (or inability) to push through those areas will help determine whether the corrective upswing has further to run or if sellers will regain control. Meanwhile, a loss of the 1.0655 and 1.0600 support levels would mark an increasing threat that the downtrend from 1.0981 has potentially resumed.