The EURUSD pair has recently experienced a significant shift in momentum, marking an end to its impressive rally from 1.0761 to a peak of 1.0936. This upward move, which had been the focus of much market attention, appears to have run its course.
In a sudden turn of events, the pair has retreated sharply from its high, plummeting to a low of 1.0821. This decline is particularly noteworthy as it breached the critical support level at 1.0831, a move that has caught many traders off guard. The breakdown below this key support suggests that the bullish phase from 1.0761 has likely concluded at the 1.0936 peak.
With this bearish development, market sentiment has quickly shifted. Traders are now bracing for potential further declines after a period of consolidation. The next target in focus is the psychological level of 1.0800, which could act as a short-term support. Should this level fail to hold, eyes will turn to the previous low at 1.0761, a level that previously served as a launching pad for the recent rally.
However, it’s not all doom and gloom for the bulls. The pair is now facing initial resistance at 1.0860. A break above this level could spark a relief rally, potentially pushing the price back towards the 1.0900 area. Such a move would offer some respite to those still holding bullish positions.