EURUSD Technical Outlook: Recovery and Key Levels

EURUSD Bounces from Key Support: What to Expect?

EURUSD Technical Outlook- It shows that EURUSD is trying to recover with some bullish movement and it is bouncing from a short-term support of 1.0550 that was created in March 2003. Now some more bullish recovery movement is expected targeting the resistance level of 1.1150. The level of 1.1150 worked as short-term support, it has broken and now the price can retest this level. As our main bias is still bearish we are expecting EURUSD will be bearish after testing the level of 1.1150.

Key Levels to Watch

1. Support at 1.0550: This historical support level from March 2003 has once again proven to be a critical pivot, initiating the current bullish recovery. Its significance is underscored by the strong bounce observed at this level.

2. Resistance at 1.1150: This level previously acted as short-term support before being broken. Now, it stands as a significant resistance point. The EURUSD is expected to test this level, and its reaction here will be crucial for future direction.

Technical Outlook

While the EURUSD shows short-term bullish tendencies, the overarching trend remains bearish. The following points summarize the current technical outlook:

-Daily Chart: The bounce from 1.0550 has led to a recovery phase, aiming for the resistance at 1.1150. This level is critical as it was a strong support that has now turned into resistance. A retest of 1.1150 could determine if the bullish momentum will continue or not.

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– Weekly Chart: The longer-term bearish trend persists, with the recent bullish movement seen as a corrective phase within this broader downtrend. A rejection at 1.1150 would likely reinforce the bearish outlook.

-Support and Resistance: Immediate support is reinforced at 1.0550, while resistance is focused at 1.1150. The behavior of the price at 1.1150 will be instrumental in defining the next major move for EURUSD.

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The EURUSD is currently in a recovery mode, rebounding from the significant support level of 1.0550. This movement is expected to target the resistance level at 1.1150. However, given the prevailing bearish bias on higher time frames, a reversal is anticipated after testing this resistance.

Traders should closely monitor the price action around 1.1150, as it will provide crucial insights into whether the recovery can extend further or if the bearish trend will resume. For now, while short-term gains are likely, the long-term outlook suggests a potential continuation of the bearish trend following a retest of 1.1150.

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