EUR/USD rally seems unstoppable, can it continue?

Key highlights

• EUR/USD rallied above the 1.1050 and 1.1120 resistance levels.
• A major bullish trend line is forming with support at 1.1120 on the 4-hour chart.

EUR/USD technical analysis

Looking at the 4-hour chart, the pair settled above the 1.1100 level, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). It even surpassed the 1.1150 level and tested 1.1200.

The pair is now consolidating gains below 1.1200. Immediate support is near the 1.1120 level or the 23.6% Fib retracement of the upward move from the 1.0775 swing low to the 1.1200 high.

There is also a major bullish trend line forming with support at 1.1120 on the same chart. The next major support sits near the 1.1040 level. A downside break below the 1.1040 level could set the pace for a larger decline.

The next major support is near the 1.0980 level or the 100 simple moving average (red, 4-hour). It is close to the 50% Fib retracement of the upward move from the 1.0775 swing low to the 1.1200 high. Any more losses might send the pair toward the 1.0920 support level.

On the upside, the pair could face resistance near the 1.1185 level. The first key resistance sits near the 1.1200 level. A clear move above the 1.1200 level could set the pace for a move toward the 1.1250 level.