EURUSD Stuck In Downtrend: Will It Break Lower Or Consolidate?

By Staff of ForexCycle

Wednesday, February 14, 2024 10:40 PM EST

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EURUSD remains trapped beneath a bearish technical picture, raising concerns about further declines. Let’s analyze the key levels and potential scenarios based on current technicals.

Downtrend in Play: Key Support Levels to Watch

Falling Trend Line Resistance: EURUSD continues to trade below the falling trend line on the 4-hour chart, indicating a downtrend since 1.1139.
Potential Downturn: As long as the price stays below this resistance, further decline is likely. The next potential support areas are 1.0670 and 1.0600.

Hope for Consolidation or Reversal?

Initial Resistance and Consolidation: If EURUSD manages to break above 1.0750, it could signal a period of consolidation within the downtrend. This could potentially lead to a retest of the 1.0805 resistance level.
Upside Breakout for Trend Reversal: Only a decisive break above the falling trend line resistance would signify a genuine trend reversal and potential for further upside.

Overall Sentiment

The technicals favor a bearish outlook for EURUSD in the near term. The downtrend from 1.1139 remains in play, with potential downside targets at 1.0670 and 1.0600. While a break above 1.0750 might indicate consolidation, only a surge above the falling trend line would suggest a potential trend reversal.

More By This Author:

GBPUSD Tests Support: Will It Hold or Break?
AUDUSD Breaks Support: Further Downturn Or Bounce In Sight?
GBPUSD Rebounds: Will It Consolidate Or Resume Downtrend?

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