The EURUSD is demonstrating strong bullish momentum, having found support near 1.08725 today. The pair also rebounded in the early US session off the higher 100-hour moving average at 1.0884.
This upward movement aligns with last week’s rebound, maintaining above the 61.8% retracement level of the decline from September 2024 high at 1.08174. If this positive trend continues, the next key targets are in the swing area between 1.0936 and 1.09543.
Key Support Levels
Should the pair fail to maintain above the 100-hour moving average and the 1.08725 level, a retest of support levels like the 200-hour moving average at 1.0852 may occur. The technical outlook remains optimistic as long as support levels are sustained.
The recent upswing reflects a strengthening position, with buyers maintaining control above notable retracement levels. As long as prices hold above these technical markers, further gains remain possible.
We observed last week’s recovery maintaining ground over the 61.8% Fibonacci retracement derived from the previous downward movement beginning in September. This suggests that the current push higher is more than just a short-term correction. A sustained move beyond 1.0936 would reinforce the broader bullish case, opening the door to further upside in the days ahead.
Market Risk Factors
However, risks remain. If sellers regain momentum and push the pair below the 100-hour moving average and 1.08725, support could be tested near 1.0852. This level coincides with the 200-hour moving average, which has acted as a stabilising force in recent sessions. Any dip towards this area should be closely monitored, as it could determine whether buying confidence persists or weakens.
For traders assessing future movements, attention should remain on these technical barriers. Holding above short-term support levels increases the likelihood of continued strength, while any shift below key moving averages may bring additional pressure. As the market recalibrates, reaction at these levels will be telling.
