The EURUSD currency pair has recently broken above a falling trend line on the 4-hour chart, indicating a period of consolidation for the ongoing downtrend that originated from 1.1091. However, caution is still warranted as the pair remains within the broader downward trajectory.
While the break above the trend line suggests a temporary pause in the downward movement, the key resistance level at 1.0760 continues to exert downward pressure. As long as this resistance holds, the downside move could be expected to resume, with a potential breakdown below 1.0672 triggering another leg down towards the 1.0600 area.
It is important to closely monitor price action around the resistance level and any potential signs of reversal or continuation of the downtrend. A decisive breakout above 1.0760 would be required to shift the bias towards a more bullish outlook. Such a breakout would also bring the price towards the next resistance level at 1.0831, where further upside momentum could be observed.
However, until a breakout above 1.0760 occurs, it is prudent to view the current price consolidation as a temporary pause within the broader downtrend. The downtrend remains intact, and traders should be prepared for the possibility of a resumption of selling pressure.
In conclusion, EURUSD has broken above a falling trend line on the 4-hour chart, indicating a period of consolidation for the ongoing downtrend. However, the key resistance level at 1.0760 continues to exert downward pressure, and as long as this level holds, the downtrend is expected to resume. A breakout above 1.0760 would suggest a shift in market dynamics and potentially open the door for further upside movement. Traders should closely monitor price action and key levels to make informed trading decisions.
