Analyzing the 4-hour chart of EUR/USD reveals recent movements below a crucial bullish trend line at 1.0900, with the pair eventually testing the support zone at 1.0880. A low was established near 1.0876, and the currency pair is currently making efforts for a renewed upward movement.
The pair has surpassed the 1.0920 level, experiencing a spike above the 100 simple moving average (red, 4 hours), and has successfully settled above the 200 simple moving average (green, 4 hours).
Immediate resistance lies in the vicinity of the 1.0980 level, with the subsequent significant hurdle at 1.1000, representing the 50% Fibonacci retracement level of the downward move from the 1.1139 swing high to the 1.0876 low.
A decisive close above the 1.1000 zone could pave the way for further upward movements, with the bulls targeting 1.1065 as the next potential stop.
In the event of a fresh decline, the pair may test the 1.0920 support. A break below this level could trigger a sustained decline, with the next major support identified at 1.0880. A downside break below 1.0880 may lead to further losses, potentially testing 1.0850, and if the bearish momentum persists, the pair might approach the 1.0820 level. Additional losses could see a descent towards the 1.0750 zone.
The current technical analysis suggests a potential for upside momentum in EUR/USD, contingent on a sustained breach of key resistance levels. Conversely, a failure to maintain support at critical levels could usher in a bearish trend with possible downward targets identified in the analysis. Traders are advised to monitor these key levels closely for potential trend confirmation.