The EUR/USD currency pair is demonstrating positive performance, maintaining its position above the 1.1700 mark. Recent analysis of the 4-hour chart reveals a developing bullish trend line, establishing support at 1.1705, indicating potential for further upward movement.
The technical indicators show that EUR/USD is not only holding its ground but also benefiting from its placement above both the 100 and 200 simple moving averages. Improved investor sentiment has allowed the pair to ascend, recently surpassing the 50% Fibonacci retracement level of the downward trajectory seen from the swing high of 1.1779 down to a low of 1.1658.
Should this momentum continue, analysts point to resistance around the 1.1750 level, which also coincides with the 76.4% Fibonacci retracement. The bulls face a significant challenge at the 1.1780 mark; a close above this level could catalyze a notable increase in momentum for the pair.
In an optimistic scenario where the bulls successfully break through the resistance, projections suggest the pair could advance towards the 1.1850 level. Should this threshold be breached, further gains may drive the currency pair towards 1.1880, with potential to reach as high as 1.1920.
On the flip side, immediate support remains at the 1.1700 level, backed by the aforementioned bullish trend line at 1.1705. Additional downside protection can be anticipated near the 1.1680 level, which aligns with the 100 simple moving average on the 4-hour chart.
Traders are closely monitoring these key levels, as they could indicate the next significant price movements for EUR/USD in the near term.
