The EURUSD pair has plunged below the lower trendline of its 4-hour falling price channel, extending its decline to reach 1.0723, where it encounters the key support level of December 8th, 2023 low. Let’s analyze the technical picture to understand potential future movements.
Support Levels and Downturn Potential
- Current Support: EURUSD rests right on the crucial support of 1.0723, which coincides with the low from December 8th, 2023.
- Breakdown Zone: If the price breaks below this support, further decline could be seen, targeting the 1.0660 area and potentially reaching as low as 1.0550.
Resistance and Potential Bounce
- Immediate Hurdle: If the sellers are exhausted and a bounce occurs, the initial resistance to overcome is at 1.0790.
- Breakout Possibility: Surpassing this resistance could trigger another upward move, potentially retesting the top of the falling price channel.
Overall Sentiment
EURUSD’s breakdown from the price channel creates uncertainty about its immediate direction. A breach below the December low of 1.0723 could lead to further downside, while a bounce above 1.0790 might indicate a temporary reprieve from the selling pressure.