Image Source: PixabayThe EURUSD currency pair has broken below the key 1.0804 support level, suggesting that the recent upside move from the 1.0600 low has likely completed at the 1.0894 high. This technical breakdown has opened the door for a potential deeper correction.
Further Downside Risks Emerge
Following the break of the 1.0804 support, the next key downside targets for the EURUSD are located in the 1.0760 and 1.0700 areas.The path of least resistance for the pair appears to be further losses in the coming days as the bearish momentum builds.
Potential Uptrend Resumption After Correction
While the near-term technical outlook has shifted to a more bearish bias, the current decline from the 1.0894 high could ultimately be viewed as a correction within the broader uptrend that originated from the 1.0600 low. In this scenario, another rally toward the key 1.1000 handles could potentially unfold for the pair after the current corrective phase.
Key Resistance Levels
In the near-term, the first level of resistance to watch on the topside is the 1.0855 area. A breakout above this level could potentially trigger an upside move to retest the 1.0894 previous high resistance. If buyers can push the EURUSD above 1.0894, the next key targets would be the 1.0940 and 1.1000 resistance zones.
Levels to Watch
The key levels to watch in the EURUSD are the 1.0760 and 1.0700 downside targets, along with the 1.0855, 1.0894, 1.0940, and 1.1000 resistance barriers.As long as the pair remains below 1.0855, the overall technical bias will remain bearish, with the potential for a deeper correction toward the 1.0700 area.However, a move back above 1.0855 and 1.0894 would ease the downside pressure and potentially signal the resumption of the broader uptrend from 1.0600, with the 1.1000 handle being the next key objective.The EURUSD has shifted to a more bearish near-term outlook after the recent breakdown below 1.0804 support. Traders will want to closely monitor the key support and resistance levels to determine if the current decline is a corrective phase within the broader uptrend or the start of a more significant bearish reversal.More By This Author:US Dollar Extends Upside Momentum Against Japanese Yen
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