The EURUSD currency pair has been entrenched in a persistent downtrend from its peak at 1.1095. Currently, the pair remains within a falling price channel on the 4-hour chart, suggesting that the bearish momentum is still intact.
As long as the channel resistance holds, the downside movement in EURUSD is likely to persist. Traders will closely monitor the price action for any signs of a breakdown below the recent low of 1.0635. A breach of this support level could trigger further downside momentum, potentially leading to a move towards the 1.0580 area.
On the upside, the key resistance level to overcome is at 1.0778. A successful break above this level would suggest a potential completion of the current downtrend. In such a scenario, the pair could aim for the next resistance levels at 1.0831, followed by 1.0909. These levels are likely to attract the attention of traders as they represent potential areas of reversal or retracement.
It is important to note that trading within a falling price channel requires caution. Traders should be mindful of the prevailing trend and trade with the overall momentum. Technical indicators and price patterns can offer additional confirmation signals for potential entry and exit points.
