EURUSD at Crossroads: Uptrend Resumption or Downtrend Continuation?

EURUSD has staged a bounce from its recent low of 1.0694, but faces a critical hurdle at the falling trend line on the 4-hour chart. This resistance level will determine whether the recent uptick signals a trend reversal or merely a temporary pause within the ongoing downtrend.

Upside Potential: Can the Rally Continue?

  • 1.0900: Next Target in Sight: If the bulls manage to push the price above the falling trend line resistance, it could indicate a potential breakout and pave the way for a further rally towards the 1.0900 area. This would signal a shift in momentum and potentially mark the start of a new uptrend.

Support Levels to Watch for Downside Continuation

  • 1.0760: Initial Hurdle: If the upside momentum fades and sellers regain control, a breakdown below the initial support level of 1.0760 could trigger another decline. This could lead to a retest of the 1.0694 support level.
  • Lower Support Levels: Further breakdown below 1.0694 would open the door for falls towards 1.0670 and even 1.0600, solidifying the downtrend and suggesting the recent bounce was just a correction.

Overall Sentiment

The outcome of the price action around the 1.0760 support level and the falling trend line resistance will be crucial in determining EURUSD’s next move. A breakout above the trend line would indicate a potential trend reversal and upside potential towards 1.0900. Conversely, a breakdown below 1.0760 and subsequent breach of 1.0694 would reinforce the downtrend and suggest further decline towards 1.0600 or lower.