EURUSD has encountered a hurdle in its uptrend, reaching the lower boundary of a technical indicator. This analysis examines the current situation and explores potential scenarios for the currency pair.

Uptrend at a Crossroads:

• Channel Support in Focus: EURUSD has reached the bottom of the rising price channel on the 4-hour chart. This technical pattern has been guiding the uptrend since 1.0694.
• Crucial Support Test: How the price reacts at this critical juncture will be crucial in determining the future direction of the uptrend.
   

Potential Scenarios:

• Consolidation or Reversal:
  • Channel Support Holds: If support holds, the recent pullback from 1.0981 could be considered a consolidation phase within the broader uptrend. This scenario would allow for price stabilization before a potential continuation of the upward move.
  • Upside Move Resumption: In this case, an initial resistance level to watch is at 1.0915. Overcoming this hurdle could trigger another rise to test the previous high at 1.0981. A decisive breakout above this point could pave the way for a further climb towards the 1.1050 target area.
• Downturn Signal:
  • Channel Support Breached: Conversely, a breakdown below the channel support would suggest a weakening of the uptrend and could indicate a potential trend reversal.
     

Downside Levels to Monitor:

• 1.0865 as Next Support: If the bears manage to break below the channel, the next support level to watch is at 1.0865.
• Deeper Correction or Reversal: A further decline below 1.0865 would be a significant bearish signal. This scenario could see the price fall towards 1.0800 and potentially even revisit the psychologically important level of 1.0700.
   

Overall Sentiment:

The technical outlook for EURUSD hinges on the price action around the channel support. A break above 1.0915 would favor the bulls, while a breakdown below 1.0865 would raise concerns about a potential trend reversal. Close monitoring of these key levels is essential to determine the future direction of EURUSD.

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