EUR/USD analysis – two Key Scenarios

hello guys.

The EUR/USD pair has witnessed a strong bullish surge, breaking through key resistance levels. However, two possible scenarios emerge from this critical point:

🔴 First Scenario (Bullish Continuation):

Price could retrace to the 1.07-1.072 demand zone before resuming its upward trajectory.
If support holds, the pair may climb towards the 1.10-1.105 resistance zone, aligning with the upper boundary of the ascending channel.

🔵 Second Scenario (Bearish Reversal):

If bullish momentum fades, a deeper correction may follow, breaking below the key support zone.
This could lead the price toward the 1.04-1.043 area, marking a retest of previous lows and reinforcing bearish sentiment.

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Conclusion:
The current level serves as a critical decision point. If price sustains above support ($1.072-$1.068), bullish momentum may continue. However, a break below could signal a bearish correction, shifting market sentiment. Traders should watch key levels for confirmation of either scenario.