The EURUSD pair has taken a tumble, breaking below the key support level of 1.0723 and extending its decline from 1.1139 to reach a new low of 1.0700. Let’s break down the technical analysis to understand where the pair might head next.
Downside Potential and Support Targets
- Broken Barrier: The breach of 1.0723 support suggests further downside pressure on EURUSD.
- Potential Targets: In the coming days, the pair could fall further towards the 1.0670 area, with a possibility of reaching 1.0600 if the selling pressure persists.
Resistance for a Potential Bounce
- Immediate Hurdle: If the sellers take a breather and a bounce occurs, the initial resistance to overcome is at 1.0750.
- Retest Chance: Recapturing this level could lead to a retest of the 1.0805 resistance level.
- Upside Hope: Surpassing 1.0805 could trigger a more significant climb, potentially challenging the falling trend line on the 4-hour chart.
Overall Sentiment
The technical picture for EURUSD leans bearish. The breakdown below 1.0723 and the presence of lower support levels indicate a potential continuation of the downtrend. However, a break above 1.0750 and subsequent hurdles could signal a temporary reprieve or even a trend reversal.