EURUSD has made a decisive attempt to break the current trendlines which has implications for the future direction of the currency pair.
Failure to Break the Falling Channel
EURUSD has fallen short in its attempts to break above the top of the falling price channel as indicated in the 4-hour chart. This suggests the currency pair continues to stay tethered to the downtrend from 1.1139.
Continuation of the Downside Move
As long as the pair remains contained within the price channel, the downward trajectory is expected to persist. The next target for this move has been projected at 1.0770, followed by a further decline towards 1.0723.
Diminishing Downward Momentum
However, it’s worth noting that the downside momentum appears to be slackening, signaling that the downward trend originating from 1.1139 could be drawing to a close.
Resistance and Potential for Upside
The immediate resistance for EURUSD stands at 1.0840. Should there be a successful breach of this level, another upward rally could materialize, thrusting the pair to potentially retest the resistance of the price channel.
In summary, while EURUSD has failed to shatter the top of the price channel, indicating continuous presence in the downtrend, there have been tell-tale signs with a diminishing momentum that suggest an end could be near. Resistance at 1.0840 serves as the key level to monitor.