The EURUSD pair has experienced a notable bearish development as it broke below the support level at 1.0845. The downward move from the previous high of 1.1091 has extended, with the price reaching as low as 1.0805. This suggests that the bears have gained momentum and are currently in control of the market sentiment.
As long as the price remains below the falling trend line on the 4-hour chart, the bearish bias is likely to persist. Traders should anticipate the continuation of the downside move, with the next target being the 1.0710 area. A break below 1.0710 could potentially open the door for further declines in the future.
On the upside, the key resistance to watch is at 1.0909. If the price manages to break above this level, it could signal a shift in the bearish momentum and potentially lead to another upward movement towards 1.1095. However, until such a breakout occurs, the prevailing downtrend remains intact.
Traders should closely monitor the price action, particularly the interaction with the trend line and key support and resistance levels. These levels can provide valuable insights into potential entry and exit points for trades. Additionally, keeping an eye on market news and economic indicators that may impact the EURUSD pair can help traders make informed decisions.
In conclusion, the EURUSD pair has broken below the important support level at 1.0845 and extended its downward move. As long as the price remains below the falling trend line, the bearish sentiment is expected to continue, with the next target at 1.0710. Key resistance is seen at 1.0909, and a breakout above this level could signal a potential reversal in the bearish trend. Traders should remain vigilant and adjust their trading strategies accordingly based on the evolving market conditions in the EURUSD pair.
