EURUSD technical outlook: Bulls maintain control above key support

Last week, the EURUSD surged higher, breaking above key resistance levels and signaling a bullish shift on the daily chart. The pair successfully moved above the 100-day moving average (MA) and extended gains beyond 1.0726, aligning with the 200-day MA. This breakout reinforced positive sentiment in the market.

On Friday, the pair tested the lower boundary of a key swing area at 1.08862, with the broader range extending up to 1.0942. A sustained break above 1.0942 would open the door for further upside, targeting resistance at 1.1000–1.1017, followed by the 1.0990–1.1115 zone.

On the downside, initial support is at 1.0726, where the 200-day MA acts as a critical level. Below that, the next key support zone sits between 1.0600 and 1.0615, which includes a swing area and the 38.2% retracement level. As long as price remains above 1.0726, buyers remain in firm control. However, a break below the 200-day MA would signal a failed breakout, shifting momentum in favor of sellers.

Outlook:

Bulls remain in control above 1.0726, with resistance at 1.0942 in focus. A breakout above this level strengthens the bullish case, while a move back below the 200-day MA could trigger a deeper pullback and shift sentiment to the downside.

This article was written by Greg Michalowski at www.forexlive.com.