The EUR/USD currency pair has witnessed a significant bullish development, breaking above the resistance of the falling trend line on the 4-hour chart. This breakout has been followed by a move above the 1.0811 resistance level, indicating that the previous downside move from the 1.0981 high has likely completed at the 1.0600 low.
As long as the EUR/USD maintains its position within the rising price channel on the 4-hour chart, the upside momentum could potentially continue. The next target for the bulls is the 1.0880 area, followed by the 1.0930 zone.
However, it’s important to note that the path higher may not be without obstacles. A potential breakdown below the support of the rising price channel could potentially lead the EUR/USD back towards the 1.0723 support level.
It’s crucial to understand that only a decisive break below the 1.0723 level would potentially indicate that the current upside move has completed. In such a scenario, another decline towards the 1.0600 level could potentially be on the cards.
In summary, the EUR/USD has staged a bullish breakout, surpassing the resistance of the falling trend line and the 1.0811 level. This development suggests that the pair has potentially bottomed out at the 1.0600 low and is now poised for further upside momentum.
As long as the EUR/USD respects the rising price channel on the 4-hour chart, the targets for the bulls lie at the 1.0880 and 1.0930 levels. However, traders should remain vigilant and closely monitor the price action around the channel support and the 1.0723 level, as a breakdown below these levels could potentially negate the bullish outlook and potentially pave the way for a retest of the 1.0600 support.
Traders and investors are advised to stay agile and adapt their strategies based on the evolving price action in the EUR/USD currency pair.