EURUSD Price Analysis: Downward Trend Nearing Its End

The EURUSD currency pair has been demonstrating a notable downward movement in recent times, with significant developments in price points.

EURUSD 4-hour chart

Breach of 1.0821 Support Level

The EURUSD broke below the 1.0821 support level, extending its downside movement to as low as 1.0844. In forex trading, support level breaches often indicate a potential trend in the direction of the breach. In this case, the trend is a downward one.

Falling Price Channel and Next Target

Observations from the 4-hour chart show that the price remains within a falling price channel. While the channel is maintained, we can anticipate the downside movement to continue, leading to the next target situated at the bottom of this channel, around 1.0790.

Decline Momentum Diminishing

Despite the continued fall, there is an interesting undercurrent in the market surrounding EURUSD. The momentum intensity of the EURUSD’s decline is decreasing, indicating that the downtrend from 1.1139 might soon come to a halt.

The Potential of a Price Channel Resistance Breakout

A breakout of the price channel resistance could reverse the current trend. If the price bounces back to the next resistance level at 1.0932, this could signal that the downside move has concluded.

Post-Breakout Projections

On surpassing the 1.0932 resistance level, the next anticipated target would rest at 1.0998 resistance. The achievement of this price point would further confirm that the downtrend has terminated, initiating a new phase in the EURUSD market.

In summary, the EURUSD pair is currently navigating a downward trend, but indications suggest that this trend may be nearing its end. Traders should keep a close eye on potential breakouts followed by upward resistance levels.