The EURUSD has successfully broken the yearly support level of 1.087 on both weekly and monthly charts, as well as the yearly uptrend line from 2016 to 2020, and surpassed the 50% Fibonacci level that extended from June 2021 to September 2022. These are indications that the overall trend is leaning towards an upward direction. However, the possibility of a fake breakout exists, which supports concerns about divergence in some momentum indicators.
On a 4-hour chart, based on the previous data, the price is moving in an upward channel and has reached the upper edge of the channel, which suggests a possible correction. There is a chance that the current correction will be enough for the price to resume its uptrend to 1.1120. However, a stronger scenario is that the price will continue to drop to 1.0925, which is a convergence of several support levels, including the yearly uptrend line, a previous resistance level, the 100-hour moving average, the 200-hour moving average (which is considered a magnet for the Euro-Dollar), and the 61.8% Fibonacci level.
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