EURUSD: Testing Support – Uptrend at Risk Or Finding Footing?

EURUSD: Testing Support – Uptrend At Risk Or Finding Footing?

By Staff of ForexCycle

Friday, March 1, 2024 5:48 AM EDT

EURUSD is facing a critical juncture as it approaches the 1.0789 support level once again. This level has acted as a support zone in the past, and its potential breach or hold will have significant implications for the near-term direction of the currency pair.

Breakdown Scenario: Uptrend Completion

1.0789 Support Breach: If EURUSD breaks below the 1.0789 support level, it would signal a potential completion of the uptrend that started at 1.0694. This breakdown could lead to further declines towards the next support levels at 1.0750 and 1.0694, potentially marking a trend reversal.

Uptrend Scenario: Consolidation or Continuation?

1.0789 Support Holds: If EURUSD manages to hold above the 1.0789 support level, it could be interpreted as a sign of uptrend resilience. The recent pullback from 1.0887 could then be seen as a healthy consolidation phase within the ongoing uptrend.
1.0840 Resistance: In this scenario, the bulls would need to overcome the initial resistance at 1.0840 to regain control. A break above this level could trigger a further rise towards the 1.0887 resistance, and a subsequent break above that could potentially lead to a move towards the 1.0950 area, solidifying the uptrend.

Overall Sentiment:

The technical outlook for EURUSD is currently uncertain. The proximity to the 1.0789 support level creates a make-or-break situation for the uptrend. A breakdown below this level could signal a trend reversal, while a successful hold could pave the way for further upside potential after a consolidation phase. Monitoring the price action around these key levels will be crucial in determining the pair’s next move.

More By This Author:

EURUSD Stalls At Support: Uptrend Intact Or Vulnerable?
EURUSD Slips Below Trendline: Uptrend At Risk Or Temporary Pull Back?
USDJPY Stalemate: Uptrend On Hold Or Reversal in Sight?

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