The EURUSD currency pair has persisted in its downward trajectory, with the price continuing its descent from the 1.1091 level. Currently, the pair is approaching a crucial support level at 1.0710, which could act as a significant turning point for market participants.
A breakdown below the 1.0710 support level has the potential to trigger further downside movement in the pair. If this support is breached, the next target for traders to monitor would be the 1.0600 area.
On the upside, the immediate resistance for EURUSD can be identified at the falling trend line on the 4-hour chart. Traders should closely observe the price action around this trend line as a breakout above it would signal a possible shift in the current bearish sentiment. Additionally, a subsequent break above the 1.0831 resistance level would provide further confirmation of a potential reversal. Such a move could pave the way for the price to retest the key resistance at 1.0909.
To summarize, the EURUSD pair has extended its decline from the 1.1091 level and is currently approaching the critical 1.0710 support level. A breakdown below this support could lead to further downside movement towards 1.0600. Traders should closely monitor the falling trend line and the 1.0831 resistance level for potential signs of a trend reversal. Staying informed about market developments and implementing prudent risk management techniques is essential for navigating the EURUSD market effectively.
