The EUR/USD currency pair has recently broken above the 1.1050 resistance level, hinting that the downward movement from 1.1154 may have found its bottom at 1.1001. However, it's essential to note that the pair is still navigating within a falling price channel on the 4-hour chart. This suggests that the longer-term downtrend, which began at 1.1201, is still in play.

As long as the channel's resistance remains intact, the recent bounce from 1.1001 can be viewed as a consolidation phase within this downtrend. There's still potential for another decline towards the 1.1000 support level after this period of consolidation.

▎Key Support Levels to Watch

The initial support level to keep an eye on is 1.1065. If the price breaks below this threshold, we could see a move back toward the significant 1.1000 support level. A further drop beneath 1.1000 could lead us to the next support at 1.0960, and potentially down to the 1.0900 area.

▎Upside Potential

On the flip side, if the EUR/USD manages to break through the channel resistance, it would suggest that the downward move from 1.1201 has indeed concluded at 1.1001. In this scenario, we could see the next target set at around 1.1150, followed by a push toward the previous high resistance at 1.1201.

▎Conclusion

In summary, while the recent breakout above 1.1050 is a positive sign for EUR/USD bulls, traders should remain cautious due to the prevailing downtrend indicated by the falling price channel. Keeping an eye on key support and resistance levels will be crucial in navigating this market in the coming sessions.