The EURUSD currency pair has experienced a significant extension of its downward movement, reaching as low as 1.0635 from the previous high at 1.1091. Traders are closely monitoring the pair’s price action as it remains below a falling trend line on the 4-hour chart, indicating the potential for further downside.
As long as the price remains below the trend line resistance, market participants anticipate the continuation of the downward move in the near term. The next target for EURUSD is projected to be around the 1.0580 area. This level could serve as a significant support level and a potential turning point for the pair’s price trajectory.
However, it is important to consider that a breakout above the trend line resistance could potentially alter the bearish sentiment in the market. If EURUSD manages to surpass the trend line resistance, it would bring the price back towards the next resistance level at 1.0758. A decisive move above this level might indicate the completion of the downtrend and potentially open up further upside opportunities.
Traders and investors are advised to closely monitor the price action around the trend line resistance and the subsequent reaction to determine the next potential direction for EURUSD.
