The EURUSD pair has recently experienced a significant downward move, capturing the attention of traders and analysts alike. The pair has extended its bearish trajectory from the 1.0981 level to as low as 1.0774, breaching the crucial 1.0795 support level in the process.
Downside Momentum Persists
As the pair navigates through this bearish phase, traders will be closely monitoring the 1.0864 resistance level. As long as this level holds firm, the downside move could be expected to continue, with the next potential target area being the 1.0720 region.
Initial Resistance and Potential Rebounds
While the bears currently hold the upper hand, traders will be keeping a watchful eye on the initial resistance level at 1.0810. A decisive break above this level could potentially bring the price back to test the 1.0864 resistance level.
If the pair manages to surpass the 1.0864 hurdle, it could potentially trigger further upside momentum, potentially pushing the pair towards the falling trend line on the 4-hour chart, a critical battleground for bulls and bears alike.
Key Levels to Watch
In this volatile phase, traders will be keeping a close eye on the following key levels:
- 1.0864 (resistance)
- 1.0720 (potential downside target)
- 1.0810 (initial resistance)
- Falling trend line (critical resistance)
The price action around these levels will be instrumental in determining the pair’s next move and the potential for a continuation of the downtrend, a potential rebound, or a more significant reversal.