EUR/USD saw a strong rebound last week, indicating that the pullback from 1.0915 may have ended at 1.0665. The initial bias for the upcoming week remains on the upside towards the 1.0915 resistance level. A decisive break above this resistance could lead to a target of 1.0919. However, if the price falls below 1.0783, the intraday bias may shift to neutral.
Looking at the bigger picture, the price movements from 1.1274 are seen as part of a corrective pattern that is still unfolding. A break below 1.0601 could target the 1.0447 support level and potentially even lower. Conversely, a strong break above 1.0915 resistance might signal the start of another upward movement towards the 1.1138 resistance level.
In the long term, it is believed that a bottom has been established at 0.9534 (2022 low). Despite this, the upside potential is currently limited below the 55 M EMA, which is at 1.1018. This suggests that there are no clear signs of a trend reversal yet. If the current downward trend gains momentum, there is a possibility that the downtrend from 1.6039 (2008 high) could resume at a later stage.
Traders and investors will be closely monitoring the key resistance and support levels mentioned in the analysis to make informed decisions about their EUR/USD positions. It is essential to stay updated on the latest market trends and developments to navigate the currency pair effectively.
