The EURUSD currency pair has broken out above the falling trendline resistance and the 1.0811 level visible on the 4-hour chart. This technical breakout suggests that the recent downside move from the 1.0981 high has likely completed at the 1.0600 low.
Uptrend Taking Shape After Breakout
Following the bullish breakout, the EURUSD has established a new rising price channel on the 4-hour timeframe. As long as the pair remains within the confines of this bullish channel, the path of least resistance appears to be further upside.The next key targets to watch on the topside are the 1.0880 and 1.0930 areas.
Channel Support Key for Bullish Outlook
While the technical outlook has shifted to a more bullish bias, traders will want to keep a close eye on the rising channel support visible on the 4-hour chart. A breakdown below this trendline would likely signal that the recent upside move has stalled.In this scenario, the first level of support to watch would be the 1.0723 area. Only a move below 1.0723 would likely confirm that the upside move from 1.0600 has completed.
Potential Bearish Resumption Below 1.0723
If the EURUSD breaks down below the 1.0723 support, it would open the door for a potential bearish resumption, with the next key downside target in the 1.0600 area.For now, the EURUSD uptrend remains firmly in place, with the path of least resistance pointing to further gains toward the 1.0880 and 1.0930 targets as long as the rising channel support holds.
Key Levels to Watch
The key levels to watch in the EURUSD are the rising channel support, the 1.0880 and 1.0930 upside targets, and the 1.0723 and 1.0600 support areas.
As long as the pair remains within the bullish channel, the overall technical bias will remain tilted to the upside.
However, a breakdown below channel support and the 1.0723 level would likely signal a bearish reversal, with the potential for a retest of the 1.0600 low.
The EURUSD has shifted to a more bullish technical outlook after the recent breakout above trendline resistance and 1.0811. While further upside appears likely, traders will want to keep a close eye on the rising channel support for potential signs that the upside momentum could be waning.