The EUR/USD pair is currently displaying pronounced bullish momentum, bolstered primarily by its position above a significant upward trend line. This points towards the possibility of continued bullish momentum.
In the near term, the price might experience a downward trend to the initial support level at 1.0789 before rebounding. This level has demonstrated its strength as an overlap support and coincides with a 50% Fibonacci retracement, which underscores its credibility as a potential price reversal point.
Upon rebounding from the initial support, the price could ascend to the initial resistance level at 1.1033. Historically, this level has acted as a multi-swing high resistance, suggesting that it may pose a significant obstacle for price escalation.
Should the price undergo a more potent bearish pullback, the second support level is situated at 1.0516. This level has been a notable multi-swing low support and could serve as a launchpad for price recovery if it descends below the initial support.
Conversely, if the price surges past the initial resistance, it could possibly aim for the second resistance level at 1.1166. This level, being an overlap resistance and aligning with the 127.20% Fibonacci Extension, indicates that it may present a substantial challenge for bullish progression.
