The EUR/USD pair is currently displaying a bullish momentum on the weekly timeframe, with the price positioned at the 1.12236 level. This indicates a positive trend in the market. Furthermore, the price is currently trading above both the 50-day and 200-day moving averages, confirming the bullish sentiment.
Scenario 1: If the price continues to rise, it may encounter a resistance level around 1.12678, which coincides with the 61.8% Fibonacci retracement level. A successful test and break above this level could pave the way for further upward movement towards the 1.12780 level. In the event of sustained bullish momentum, the price may extend its climb towards the 1.12990 level. Beyond this, potential upside targets can be identified at 1.13348 and 1.13723.
Continuing with the bullish scenario, the price might aim for the levels of 1.13960 and 1.14302. These levels are significant resistance areas to watch, as they could present further challenges for the bulls. If the price manages to break above these levels, it may signal a strong bullish trend and open the path towards the 1.14718 and 1.14948 resistance levels, which should be closely monitored for potential reversals or further continuation.
Scenario 2: Alternatively, if the price reverses from its current levels, it could head lower and test the 1.11761 support level. A successful test at this level may lead to further downward movement towards the 1.11529 level. Another important support level to consider is located at 1.11288, representing the 61.8% Fibonacci retracement level. Market sentiment will play a significant role in determining whether the price will test the 1.11056 to 1.10879 levels. These levels should be closely monitored for potential support and potential shifts in market sentiment. In the event of a bearish market sentiment, the price may revisit the levels seen in the previous week, which could lead to a retest of key support areas.
Additionally, it is worth noting that the Relative Strength Index (RSI) currently indicates an overbought range. However, there has been an increase in momentum on the weekly timeframe, suggesting that buyers are still present in the market. Traders should consider this information when making trading decisions.
In summary, the EUR/USD pair is currently displaying a bullish momentum on the weekly timeframe, with the price positioned above the 50 and 200-day moving averages. Key resistance levels to watch are located at 1.12678, 1.12780, 1.12990, 1.13348, 1.13723, 1.13960, 1.14302, 1.14718, and 1.14948. On the downside, important support levels can be found at 1.11761, 1.11529, 1.11288, 1.11056, and 1.10879. Traders should monitor market sentiment and potential reversals at these levels to make informed trading decisions.