EURUSD remains trapped beneath a bearish technical picture, raising concerns about further declines. Let’s analyze the key levels and potential scenarios based on current technicals.
Downtrend in Play: Key Support Levels to Watch
- Falling Trend Line Resistance: EURUSD continues to trade below the falling trend line on the 4-hour chart, indicating a downtrend since 1.1139.
- Potential Downturn: As long as the price stays below this resistance, further decline is likely. The next potential support areas are 1.0670 and 1.0600.
Hope for Consolidation or Reversal?
- Initial Resistance and Consolidation: If EURUSD manages to break above 1.0750, it could signal a period of consolidation within the downtrend. This could potentially lead to a retest of the 1.0805 resistance level.
- Upside Breakout for Trend Reversal: Only a decisive break above the falling trend line resistance would signify a genuine trend reversal and potential for further upside.
Overall Sentiment
The technicals favor a bearish outlook for EURUSD in the near term. The downtrend from 1.1139 remains in play, with potential downside targets at 1.0670 and 1.0600. While a break above 1.0750 might indicate consolidation, only a surge above the falling trend line would suggest a potential trend reversal.