EURUSD Weekly Analysis – July 8, 2023

The EURUSD currency pair has been experiencing a period of consolidation, as it continues to trade within a range between 1.0515 and 1.1095. Currently, the pair is approaching the resistance level at 1.1095, which holds significance for the future direction of the market.

A breakout above the 1.1095 level would suggest that the long-term uptrend, which began from 0.9535, is resuming. This would be an encouraging sign for bullish traders, as it indicates a potential for further upward movement in the pair. In such a scenario, the next target for the EURUSD would be at 1.1400, followed by 1.1800. These levels could act as psychological and technical resistance points, potentially influencing the behavior of market participants.

On the other hand, it is essential to consider the possibility of a reversal or a failed breakout. If the EURUSD fails to break above the 1.1095 resistance level, it could signal that the uptrend has already completed at that point. In this case, the pair may find support at around 1.0200, which would mark a significant retracement from the recent highs. Traders would need to closely monitor the price action and market sentiment to assess the likelihood of such a reversal.

Key support for the EURUSD remains at 1.0515. A breakdown below this level would not only invalidate the bullish outlook but also suggest a potential change in the market dynamics. A breach of this support would indicate that the consolidation phase has concluded, and the pair is entering a new bearish phase. In such a scenario, the EURUSD could seek further support at around 1.0200, as mentioned earlier.

In conclusion, the EURUSD has been trading within a sideways range, with resistance at 1.1095. A breakout above this level would suggest a continuation of the long-term uptrend, with potential targets at 1.1400 and 1.1800. Conversely, a breakdown below the key support level at 1.0515 would indicate a completion of the uptrend and could lead to a retracement towards 1.0200. Traders should remain vigilant and adapt their strategies to changing market conditions.