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EURUSD at Make or Break Level

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EURUSD continues to teeter on the edge of what could either be a bullish breakout or a retest of the multi-year low at 1.0470. The level in focus is one that we have been tracking for several days now.

The descending channel that is best seen on the 4 hour chart has contained price since April 6th. However the bulls seem insistent on breaking free from this pattern as we see the pair retesting this level for the fourth time in two weeks.

At the same time, selling pressure continues to keep any gains capped below channel resistance. For now the 4 hour chart appears to be the best indicator as to whether or not this level will continue to hold.

Keep in mind that there is some news scheduled for Friday that will affect the Euro. This includes tomorrow’s Eurogroup meetings, so be sure to take this into account when planning your trades.

Summary: On the sidelines for now. A 4 hour close above channel resistance could trigger a rally to the 1.0904 key level. Break that and the 1.1035 handle would come into play. To the downside we have the 1.0658 support level along with the multi-year low at 1.0470.

EURUSD key levels in focus on the 4 hour chart

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