The forex market has been abuzz with the recent price action in the EURUSD currency pair. After a pullback from the 1.0894 level to 1.0804, the pair has staged a remarkable breakout, surging above the resistance of a falling price channel on the 4-hour chart.
This pivotal move suggests that the pullback from 1.0894 may have already completed at 1.0804, setting the stage for a potential rally in the coming days. Traders will now be keeping a close eye on the 1.0894 resistance level as the next target for the bulls.
If the EURUSD pair manages to convincingly break through the 1.0894 level, it could signal a resumption of the uptrend that originated from the 1.0600 mark. In such a scenario, the next targets for the bulls would be the 1.0940 level, followed by the psychologically significant 1.1000 area.
However, it’s crucial to note that the forex market is inherently volatile, and reversals can occur swiftly. In this case, the initial support level to monitor is 1.0840. A breakdown below this level could potentially push the price back towards the 1.0804 support level for a retest.
If the EURUSD pair were to break below the 1.0804 level, it could indicate that the upside move from 1.0600 has already completed at 1.0894. In such a bearish scenario, the pair could potentially target the 1.0700 area in the subsequent downside move.