The EUR/USD currency pair has recently broken below its rising price channel on the 4-hour chart and is currently testing the support level at 1.1097.
Analyzing Current Trends
As long as the price remains above the 1.1097 support level, the decline from 1.1201 can be viewed as a consolidation phase in the ongoing uptrend that started from 1.0777. This means there’s still a possibility for another rise towards the 1.1300 mark after this consolidation period.
Key Resistance and Support Levels
- Initial Resistance: The immediate resistance is positioned at 1.1100. If this level is broken, it could ignite another upward movement, aiming to retest the 1.1201 resistance. A break above this resistance might push the price towards the 1.1300 area, and potentially even up to 1.1450.
- Potential Downside Risks: Conversely, if the price breaks below the 1.1097 support, it would suggest that the rise from 1.0777 has concluded at 1.1201. In this scenario, the pair may find initial support around 1.1070.
Conclusion
Monitoring these critical support and resistance levels is vital for making informed trading decisions. While the EUR/USD pair shows potential for further upward movement, any significant breakdown could signal a shift in momentum. Stay tuned for the latest updates!
by ForexInflux
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