EURUSD Daily Analysis – June 5, 2023

The EURUSD currency pair experienced a pullback from its recent high of 1.0778 and subsequently reached a low of 1.0690. This price action suggests that the pair remains within a downtrend that originated from 1.1095. Traders are closely monitoring the pair’s movement within a falling price channel on the 4-hour chart to gauge its future trajectory.

The price channel formation indicates that the downward movement in EURUSD has been well-contained within a defined channel. As long as the channel resistance holds, there is a higher probability that the pair will continue its downtrend. Traders will closely monitor the price action near the channel resistance for any signs of bearish momentum that could confirm the continuation of the downward move. The next potential target for the pair lies in the 1.0580 area, where further support may be found.

At present, a key resistance level to watch is located at 1.0778. A decisive break above this level would suggest that the downward move has reached its completion, potentially signaling a shift in market sentiment. In such a scenario, the pair may target the next resistance level at 1.0831, followed by 1.0909. Traders will assess the strength of any bullish momentum near these resistance levels to gauge the potential for a sustained upward move.