EURUSD Daily Analysis – August 7, 2023

EURUSD is currently encountering the resistance of the falling trend line on the 4-hour chart.

As long as the price remains below the trend line resistance, the bounce from 1.0912 could be viewed as a consolidation phase within the downtrend from 1.1275. If there is a breakdown below the support level at 1.0912, it could potentially trigger a further downside move towards the 1.0833 support level.

A key resistance to watch is at 1.1047. If there is a breakout above this level, it would confirm that the downside move has already completed at 1.0912. In such a scenario, another rise towards the 1.1275 level could be anticipated.

Traders should carefully monitor the price action around the falling trend line, as well as the support and resistance levels mentioned, for potential breakout or reversal signals.

To summarize, the analysis suggests that the current bounce in EURUSD may be a consolidation within the downtrend. A breakdown below the support level would indicate a continuation of the downside move, while a breakout above the key resistance could suggest a reversal. Traders should stay alert to key levels and monitor price action for potential trading opportunities.