The EUR/USD currency pair has reignited its rally, successfully breaking through the 1.0968 level. This movement sets a positive intraday bias, with the market trajectory now firmly aimed upward. The current surge, originating from 1.0451, is expected to challenge the 1.1278 resistance. However, this level is anticipated to present formidable resistance, potentially capping further upside gains. Conversely, a dip below the minor support level of 1.0937 would neutralize the intraday bias, leading to a phase of market consolidation. Nevertheless, the prospects for a continued rally remain high as long as the 1.0855 support level is maintained.
Expanding the scope to a more comprehensive view, the market fluctuations from the 1.1278 mark are interpreted as a correction phase in the upward trend that began from the 2022 low of 0.9538. The ascent from 1.0451 is tentatively considered the second phase of this pattern. Thus, while an additional rally is plausible, the upward momentum is expected to face constraints at the 1.1278 level, potentially setting the stage for the third phase of this corrective pattern.
Analysis Summary
The significant resistance at 1.1278 and support at 1.0855 suggest that while further upward movement is likely, the 1.1278 mark could limit gains, fitting into a larger corrective pattern from the 2022 low of 0.9538.
Key Points
- Positive intraday bias with a target at 1.1278.
- Consolidation is possible if it falls below 1.0937.
- Rally continuation is likely as long as 1.0855 support holds.
