EUR/USD has pulled back from its recent high of 1.1173, breaking below the 1.1100 support level. This suggests that the pair is entering a consolidation phase within its broader uptrend that began at 1.0777.

What to Watch Next

• Potential for Further Decline:
  • A further decline is possible in the coming days, with the target being the rising trend line on the 4-hour chart.
• Uptrend Outlook:
  • As long as the trend line support holds, the uptrend could resume.
  • A breakout above the 1.1173 resistance could lead to another rise, targeting the 1.1200 resistance level.
  • If the price moves above 1.1200, the next target would be around the 1.1250 area.
• Key Risk:
  • A breakdown below the trend line support would signal the potential end of the current uptrend.

Conclusion

EUR/USD is currently in a consolidation phase, but the overall uptrend remains intact as long as the trend line support holds. Traders should watch for a potential breakout above 1.1173, which could lead to further gains toward 1.1200 and 1.1250. However, a break below the trend line would suggest a shift in the trend.

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