The EUR/USD currency pair exhibits a continued pattern of consolidation, now hovering around 1.1004 from its recent peak. The current market stance remains impartial, with a potential upswing favored as long as the support level of 1.0863 remains unbreached. A decisive ascent above the 61.8% Fibonacci retracement mark, which sits at 1.0998 (calculated from the range of 1.1314 to 1.0487), would signify a renewed bullish momentum, aiming to revisit the high of 2022 at 1.1314. Conversely, a definitive fall below the 1.0863 support could signal a short-term peak and shift the market sentiment toward a deeper descent.
The currency fluctuations since the 1.1314 peak are interpreted as a correction phase following the significant rise from the 2022 low of 0.9574. The upward trajectory starting from 1.0487 is currently seen as the middle phase of this corrective pattern. Although further upward movements are anticipated, these are expected to be capped by the 1.1314 level, setting the stage for the emergence of the third phase in this pattern.
Analysis Summary
The EUR/USD pair is navigating a consolidation phase, with an immediate bullish outlook as long as support at 1.0863 holds. However, the overall trend suggests a corrective pattern, with the next significant move likely to be a downturn after testing the 1.1314 resistance.
Key Points
- There is immediate bullish potential for EUR/USD, hinging on 1.0863 support.
- A rise above 1.0998 could target the 2022 high of 1.1314.
- The long-term view suggests a corrective pattern, with a potential decline after testing 1.1314.
