The EURUSD pair has continued to exhibit a bearish bias, as it failed to break above the resistance level at 1.0909 and instead moved sideways within a narrow range between 1.0845 and 1.0909. This price action suggests that the pair remains in a downtrend, which originated from the high at 1.1091. Traders should be cautious of a potential further decline after the period of consolidation.
The recent sideways movement within the range of 1.0845 to 1.0909 indicates a period of indecision in the market. However, considering the prevailing downtrend, it is likely that the pair may resume its downward trajectory in the near future. Traders should monitor the price action closely for a potential breakdown below the support level at 1.0845, which could trigger another leg down towards the 1.0800 area, followed by 1.0710.
On the upside, the EURUSD pair faces immediate resistance at 1.0909, which has proven to be a significant barrier for the bulls. A decisive breakout above this level is needed to suggest a possible reversal of the current downtrend. Additionally, traders should pay attention to the falling trend line on the 4-hour chart, as it also acts as a resistance level. Only a convincing break above this trend line resistance would provide a more bullish outlook for the pair.
In conclusion, the EURUSD pair remains in a downtrend, as it failed to surpass the resistance level at 1.0909 and traded within a narrow range. Further decline is anticipated after the period of consolidation, with a potential breakdown below 1.0845 support targeting the 1.0800 area, followed by 1.0710. Traders should closely monitor the price action and look for a decisive breakout above the resistance levels to signal a potential reversal of the current downtrend.
