EURUSD technical outlook: rally stalls near resistance, key support in focus

As the European traders look to exit for the day, technically today, the EURUSD rallied modestly on the day, but stalled just ahead of a key resistance zone near 1.14238, with the high reaching 1.14181 before retreating. That swing level remains a critical barrier, and price action has turned choppy as the pair hovers around a cluster of technical levels.

The pair is currently fluctuating near the 61.8% retracement of the April high to the May low at 1.13781. This level is reinforced by a prior swing high and last week’s peak, making it a pivotal barometer for short-term directional bias. Price is oscillating above and below this zone, indicating indecision.

A move below 1.13781 and more importantly under 1.13620 would shift momentum back to the downside and increase bearish pressure, targeting the rising 100 hour MA at 1.1327 and below that the 50% retracement at 1.13183.

To resume bullish momentum, EURUSD would need to push above 1.14238, which opens the door toward the next upside target at 1.14392. Move above those levels and the swing high from April 11 at 1.14723 would be eyed.

Resistance Levels:

• 1.14181 – Today’s session high

• 1.14238 – Key swing level and near-term resistance barrier

• 1.14392 – Next upside target on a break above 1.14238

• 1.14723 – Swing high from April 11

Support Levels:

• 1.13781 – 61.8% retracement of April high to May low; also last week’s swing high

• 1.13620 – Secondary support; break below adds to bearish pressure

• 1.13270 – Rising 100-hour moving average

• 1.13183 – 50% retracement level of the same April-to-May range

These levels define the key technical zones to monitor for directional breakouts or continued consolidation.

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