The EURUSD pair has notably exhibited diminishing downside momentum, suggesting an end might be imminent for the ongoing downtrend from 1.1139.
Diminishing Downside Momentum
The strong downside momentum previously exhibited by EURUSD appears to be diminishing. This leads us to anticipate that the downside movement stemming from 1.1139 may be concluding.
Rebound from the Falling Price Channel
Interestingly, the pair has rebounded from the nadir of the falling price channel depicted on the 4-hour chart and currently faces resistance at the 1.0860 level.
Possibility of Breakout & Subsequent Rise
Should there be a breakout above this resistance level, another upward trend towards the top of the price channel could be triggered.
Channel Resistance Breakout Consequences
Further, a surge above the channel’s resistance could navigate the price towards the subsequent resistance level situated at 1.0932. A successful breach at this level could set the stage for the price to target the resistance at 1.0998.
Channel Resistance Standing Firm: The Downtrend Continues
However, it is crucial to note that as long as the resistance of the channel continues to hold, the pair remains tethered to the downtrend originating from 1.1139. This could still imply a possibility for a further decline towards the 1.0723 price point.
In summarizing, EURUSD’s market behavior suggests that a tipping point may soon be approaching, with significant resistance and support structures guiding potential future price movements. Traders must stay vigilant to capture any market inflections.