EUR/USD Bounces Off Confluence Support as Bulls Reemerge to Assert Market Control

On Tuesday, EUR/USD regained its upward trajectory following a decline in the previous two regular trading sessions. This rebound occurred near the psychologically significant 1.0900 level where two prominent trendlines appeared to intersect, as evidenced by the daily chart below.

Towards the end of the trading session, the pair experienced an increase of 0.42%, reaching a value of 1.0972. This was due to a market sentiment that was relatively harmless, as well as a general weakness in the U.S. dollar. Both daily and weekly RSI indicators had upward trends and prices were above significant moving averages, indicating that there was a consistent bullish trend in place.

As we consider the future, the technical indicators reflect positively on the common currency. This indicates that there may be a higher path of least resistance, particularly as those who are bullish remain resolute in pushing for a clear upward movement.

Should EUR/USD continue to gain momentum, it will face initial resistance at 1.1075. This price level was successfully defended by bearish traders last week, resulting in a subsequent decline. Therefore, it is important for traders to closely monitor how the exchange rate responds in the event of a retest.

A topside breakout may generate significant buying interest and pave the way for a potential advance towards 1.1170, which represents the next level of resistance. Conversely, if the sellers dominate and cause a bearish reversal, support levels at 1.0900 and 1.0730 are likely to come into play.