EURUSD Daily Analysis – June 2, 2023

The EURUSD currency pair has recently experienced a significant development as it broke above the falling trend line on the 4-hour chart. This breakout suggests that the previous downside movement from 1.1091 to 1.0635 has potentially come to an end, paving the way for a potential shift in market sentiment.

Traders and investors are now eyeing the potential for a further rally in the coming days, as the pair has broken free from the confines of the downtrend. The next target for the bulls is likely to be the 1.0831 resistance level, which, if surpassed, could trigger additional upside momentum towards the 1.0909 resistance.

The breakthrough of the falling trend line indicates a change in the market dynamics, potentially signaling a shift in favor of the euro. Market participants will closely monitor price action around these resistance levels to gauge the strength of the bullish momentum. A successful breach of these resistance levels would affirm the completion of the downside move and support the case for further upside potential.

It is worth noting that support is now established at the 1.0635 level, the recent low. As long as this support holds, the bullish bias remains intact, reinforcing the idea of a potential upward move. However, a break below this support level would invalidate the current bullish outlook and could lead to a retest of the 1.0580 level.