After breaking through the important short-term support level of 1.0912 (200 EMA on the 1-hour chart) today, EUR/USD resumed its downward correction towards the key support levels of 1.0850 (144 EMA on the daily chart), 1.0805 (200 EMA on the daily chart and the lower line of the upward channel on the weekly chart), and 1.0785 (50 EMA on the weekly chart), which separate the medium-term bullish market from the bearish one.
If economic data from the Eurozone do not start supporting the euro, and relative expectations regarding the policies of the Fed and the ECB do not change in favor of the euro this month, we can expect a reversal and a return of EUR/USD to the downward trend as early as September.
Breaking through these levels will signal EUR/USD's break into the medium-term bearish market zone and a return to the long-term bearish market zone.
In an alternative scenario, EUR/USD will break through the resistance level of 1.0912 and today's intraday high of 1.0930 and head towards important medium-term resistance levels of 1.0950 (50 EMA on the daily chart) and 1.0962 (200 EMA on the 4-hour chart).
Breaking these levels, in turn, will confirm the resumption of medium-term upward dynamics with targets near key resistance levels at 1.1060 (200 EMA on the weekly chart) and 1.1090 (50 EMA on the monthly chart).
Further growth may confirm the return of EUR/USD to the long-term bullish market zone.
Support Levels: 1.0850, 1.0805, 1.0785, 1.0700, 1.0650, 1.0530
Resistance Levels: 1.0900, 1.0912, 1.0950, 1.0962, 1.1000, 1.1060, 1.1090, 1.1200, 1.1275, 1.1300, 1.1400, 1.1500, 1.1600, 1.1700
