EURUSD Slides Lower: Downtrend Deepening Or Temporary Dip? -

EURUSD Slides Lower: Downtrend Deepening Or Temporary Dip?

Mar 28, 2024Jeremy ParkinsonFinance0

EURUSD has displayed further weakness, breaching a key support level. This analysis examines the technical situation and explores potential scenarios for the currency pair.

Downside Move Gains Traction:

Fresh Lows Established: EURUSD has extended its decline from 1.0981, reaching a new low of 1.0774. This price action reinforces the dominance of the downtrend. The breakdown below the support level at 1.0795 further strengthens the bearish outlook.

Looking for Signs of a Reversal:

1.0864 Resistance in Focus: While the immediate outlook appears bearish, a possibility for a bounce still exists. The initial hurdle to overcome for the bulls is the resistance level at 1.0810.

Uptrend Resumption Signal:

Falling Trend Line Resistance: A more significant indication of a potential trend reversal would be a breakout above the falling trend line resistance on the 4-hour chart.

Downtrend Completion: Overcoming this technical hurdle would suggest a possible completion of the downtrend that began at 1.0981.

Overall Sentiment:The technical outlook for EURUSD leans bearish in the short term. The breakdown below 1.0795 support indicates a continuation of the downtrend. As long as the resistance at 1.0864 holds, the next potential target zone could be around the 1.0720 area. However, a bounce above 1.0810 or a breakout above the falling trend line resistance could signal a potential trend reversal towards the upside. Close monitoring of price action around these key levels will be crucial in determining the future direction of EURUSD.More By This Author:USDCHF Breaks Higher: Uptrend Resumes Or Bullish False Start?EURUSD Tumbles Below Support: Downside Acceleration Or Temporary Dip?USDCHF Consolidates: Uptrend On Hold Or Gathering Momentum?