Image Source: The Euro continues to show weakness against the US Dollar, with recent price action suggesting more downside potential. Here’s what traders need to know about the current technical setup.
Recent Price Action
The EURUSD pair has experienced significant selling pressure, extending its decline from the 1.0936 level and reaching a new low at 1.0331. This movement has reshaped the technical landscape and created new levels of interest for traders.
Key Resistance Level
The critical level that traders should keep their eyes on is 1.0530. This price point has emerged as a significant resistance barrier and could be instrumental in determining the pair’s next major move.
Bearish Scenario Remains in Play
While we’re seeing a bounce from the 1.0331 low, this recovery might be nothing more than a temporary consolidation within the broader downtrend from 1.0936. As long as price remains below the 1.0530 resistance, the bearish scenario remains the primary outlook.
Important Levels to Watch
Support Levels: • Initial support: 1.0420 • Recent low: 1.0331 • Next target: 1.0200A break below 1.0420 could trigger another wave of selling, potentially pushing the pair back toward the recent low of 1.0331. If this level fails to hold, the psychological 1.0200 level comes into focus.
Potential Bullish Reversal
However, traders should remain alert to the possibility of a trend reversal. A decisive break above 1.0530 would signal that the downward move from 1.0936 may have completed at 1.0331. In this scenario, the next target for bulls would be the 1.0609 resistance level.
Trading Strategy
Given the current technical setup, traders might consider: • Watching the 1.0530 level for potential resistance • Monitoring 1.0420 as a crucial support level • Preparing for possible moves toward 1.0200 if support breaks • Being ready for a potential trend reversal above 1.0530More By This Author:EURUSD Update: Downside Move Extends As Support BreaksEURUSD Stages A Comeback: Will Bulls Reclaim Lost Ground?EURUSD Reverses Course: Bulls Retreat As Key Support Breaks
EURUSD Analysis: Bears Maintain Control As Pair Tests New Lows
