The EURUSD currency pair has continued its downward trajectory, falling from 1.0981 to a low of 1.0622 in recent trading sessions. Technical analysis suggests the bearish momentum may not be over yet.
Further Declines Likely
After a brief period of consolidation, further declines toward the 1.0550 area appear possible for the EURUSD pair. Sellers remain in control of the short-term direction.
However, the first level of resistance to watch is at 1.0670. A break above this level could signal that a corrective bounce is underway within the broader downtrend.
Potential for a Corrective Bounce
If the EURUSD pair manages to clear the 1.0670 resistance, the next upside target comes in around 1.0700. A move beyond 1.0700 could open the door for a more significant corrective rally back toward the falling trendline visible on the 4-hour chart.
For now, the path of least resistance appears to be to the downside for the EURUSD. But traders will want to keep a close eye on the 1.0670 and 1.0700 levels for potential signs that a short-term bottom may be forming.