EURUSD Daily Analysis – July 6, 2023

EURUSD continues to exhibit weakness as it remains below a prominent falling trend line on the 4-hour chart, signaling that the pair is still entrenched in a downtrend from its high of 1.1011. This suggests that sellers are in control, and as long as the trend line resistance remains intact, further downside movement could be anticipated.

Traders will closely monitor price action around the trend line resistance, as it serves as a crucial barrier for the pair. If the resistance holds, the downside momentum is expected to persist, and the next target for EURUSD would be around the 1.0750 area. This level could act as a significant support zone, potentially attracting buyers and triggering a potential bounce.

On the upside, a break above the trend line resistance would be viewed as a bullish signal, potentially shifting the near-term sentiment for EURUSD. A breakout above the resistance level would open up the possibility of a move towards the next resistance at 1.0976. Should the pair continue to rally, further gains could be observed, with the subsequent target set at 1.1011, followed by 1.1095.

In conclusion, EURUSD remains within a downtrend, with the falling trend line on the 4-hour chart acting as a key resistance level. The pair’s price action will be closely watched to assess the strength of the downtrend, with a potential downside target of 1.0750. However, a break above the trend line resistance would shift the sentiment, potentially leading to a rally towards 1.0976 and higher levels. Traders should exercise caution, closely analyze price movements, and consider external factors to make informed trading decisions.