The EUR/USD currency pair is currently encountering a significant resistance level within a falling price channel on the 4-hour chart. As traders observe market movements, it’s essential to note that as long as this channel resistance remains intact, the recent bounce from the 1.0496 level may simply be viewed as a consolidation phase within the broader downtrend that began at 1.0936.
In the coming days, we could see another decline that tests the support at 1.0496. For those looking to identify initial support levels, keep an eye on 1.0570. A drop below this point could signal further bearish momentum, potentially pushing the price down to the next support level around 1.0530. If the downward trend continues, we might even revisit the previous low at 1.0496, with an additional target near the 1.0450 area.
On the flip side, if the EUR/USD manages to break through the channel resistance, it would suggest that the downward movement from 1.0936 has concluded at 1.0496. In this scenario, traders should watch for resistance around 1.0653, with further resistance expected near the 1.0720 area.