EURUSD Technical Outlook: Key Levels and Analysis
EURUSD has broken its 2-month range, traders were waiting for this breakout. According to our last week’s analysis, if the price breaks the range in upside the target will be 1.12 followed by 1.13. The first target of 1.12 has been achieved and 1.13 has yet to achieve. If we look at weekly and monthly bias the price is still on bearish bias and the recent bullish movement can be treated as a retracement of the previous bearish movement. This week the price has a chance to extend the bullish retracement to the target of 1.13. And we will look at how the price behaves on this level of 1.13 to decide on further movement. But if the price goes back and closes below 1.1050 then the bearish movement can be resumed which is the main bias according to the longer time frame.
Key Levels to Watch
Support at 1.1050: Should the price reverse and close below 1.1050, it would signal a potential resumption of the longer-term bearish trend. This level is crucial as it has been a significant support zone during the consolidation phase.
Resistance at 1.13: This level is the next target for the bullish retracement. The behavior of the price around 1.13 will be critical in determining future movements. A decisive break above 1.13 could signal a continuation of the bullish retracement, whereas failure to sustain above this level might result in a bearish reversal.
Technical Outlook
Despite the recent bullish momentum, the weekly and monthly biases for EURUSD remain bearish. The recent upward movement can be viewed as a retracement within the broader downtrend. The following points provide a comprehensive view of the current technical outlook:
– Weekly Chart: The longer-term bearish trend remains intact. The recent upward movement towards 1.12 and 1.13 is part of a correction phase. Key resistance at 1.13 will be pivotal in determining whether the bullish retracement has more room to run.
– Daily Chart: The break above the two-month range has provided a bullish impetus, achieving the initial target of 1.12. The daily chart now shows potential for further gains towards 1.13, but traders should watch for signs of exhaustion as the price approaches this level.
– Support and Resistance: Immediate support lies at 1.1150, followed by the critical 1.1050 level. Resistance is now focused at 1.13, and a successful breach could open the way to further upside targets.
Conclusion
The EURUSD has shown significant bullish momentum by breaking out of its two-month range and reaching the first target of 1.12. Traders should now focus on the 1.13 level, which serves as the next major resistance. How the price behaves at this level will provide critical insights into future movements. A sustained move above 1.13 could indicate further bullish retracement, while a close below 1.1050 would reaffirm the bearish bias prevalent in the weekly and monthly charts.
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