The EURUSD currency pair was unable to break through a key falling trendline resistance visible on the 4-hour chart timeframe. After hitting that resistance around the 1.0884 level, the pair has dropped sharply lower, breaking down beneath the 1.0790 support area in the process.
This bearish breakdown has now brought the EURUSD towards another important support zone around 1.0724. If the sellers maintain control and breach the 1.0724 level, it could open the path for a continuation lower towards the 1.0694 low from February 14th. Beyond that, the next key target on the downside is in the 1.0650 region.
For the EURUSD to find any relief and a potential bullish reprieve, the buyers would need to regain control and push the pair back above the newly formed 1.0790 resistance area. Only a sustained move above 1.0790 could set up another rally attempt towards the falling trendline overhead.
However, the overall technical bias remains bearish as long as the EURUSD holds below the trendline resistance. The path of least resistance appears to be for further downside at this stage after the recent breakdown below 1.0790 support.
EURUSD traders will want to keep a close eye on whether the key 1.0724 support level holds firm or breaks in the coming sessions. A break below 1.0724 would increase the likelihood of a test of the 1.0694 and potentially 1.0650 levels next. On the flip side, only a move back above 1.0790 would alleviate some of the near-term bearish pressure.