EUR/USD Update: What's Next After Recent Pullback?

The EUR/USD currency pair has recently experienced an interesting shift. After successfully breaking through the crucial resistance level of 1.1200, the pair peaked at 1.1213 before pulling back to a low of 1.1121. This movement has created some buzz among traders and analysts alike.

Currently, as we examine the 4-hour chart, it appears that as long as the price remains above the rising trend line, this pullback can be viewed as a consolidation phase following the uptrend that began at 1.1001. There is still potential for the Euro to rise again and make another attempt to retest the 1.1200 resistance level.

Should the price break through this resistance again, we could see a significant upswing, possibly reaching the 1.1250 area, and even further towards 1.1300. That said, traders need to keep an eye on the downside risks as well. If we see a breach of the rising trend line, the price could fall back to test the key support level at 1.1068. A drop below this key area would likely indicate the end of the current uptrend, throwing a wrench in the bullish outlook.

In summary, while the recent pullback is notable, the overall trend seems to remain intact as long as the price stays above the rising trend line. Keep your eyes peeled for developments in this pair, as the next moves could be quite significant!

ForexCycle