The EURUSD pair has recently captured the attention of traders and analysts alike with its impressive bounce from the 1.0834 level. This strong recovery has propelled the pair to as high as 1.0942, breaching the 1.0915 resistance level in the process, signaling a potential shift in momentum.
Bullish Reversal Signals
The pair’s ability to break above the 1.0915 resistance level suggests that the falling move from the 1.0981 high may have completed at the 1.0834 level. This development has fueled speculation that the bears may be losing their grip on the market, potentially paving the way for a bullish resurgence.
Upside Momentum and Targets
With the bullish sentiment gaining traction, further upside movement is likely to be seen in the coming days. A decisive breakout above the 1.0942 level could potentially open the door for the pair to test the 1.0981 resistance level once again. If the bulls manage to overcome this hurdle, their sights may be set on the 1.1050 area, a significant psychological level in the market.
Potential Consolidation and Support Levels
While the bulls currently hold the advantage, traders will be closely monitoring the initial support level at 1.0885. A break below this level could potentially trigger another bout of selling pressure, potentially sending the pair towards the 1.0800 level.
Key Levels to Watch
In this volatile phase, traders will be keeping a close eye on the following key levels:
- 1.0942 (current resistance)
- 1.0981 (resistance)
- 1.1050 (potential upside target)
- 1.0885 (initial support)
- 1.0800 (potential downside target)
The price action around these levels will be instrumental in determining the pair’s next move and the potential for a continuation of the uptrend, a consolidation phase, or a potential reversal.