The EUR/USD currency pair has broken below the bottom of the rising price channel on the 4-hour chart, suggesting that the upside move from the 1.0600 level has likely completed at the 1.0752 high. This development could potentially pave the way for further declines in the coming days.
The next target for the EUR/USD bears is the 1.0635 area. If the pair breaks below this level, it could trigger a more significant downside move, potentially testing the crucial 1.0600 support zone. A breach of the 1.0600 support level would shift the focus towards the 1.0500 area.
However, it’s important to note that the EUR/USD is not without potential resistance levels on the upside. The initial resistance is currently situated at the 1.0695 level. A break above this level could potentially trigger another rally towards the previous high of 1.0752.
In summary, the EUR/USD has broken below a key support level, suggesting that the recent upside move has likely exhausted itself. Further declines could be on the horizon, with the 1.0635 and 1.0600 levels acting as potential targets for the bears. However, if the pair manages to regain strength and surpass the 1.0695 resistance level, it could potentially reignite bullish momentum and lead to a retest of the 1.0752 high.
Traders and investors should closely monitor the price action around these crucial levels to gauge the potential direction of the EUR/USD in the coming days.