In recent trading sessions, the EURUSD pair encountered significant downward pressure, resulting in a breach of the support line within its bullish channel. This downward movement was further underscored by the formation of a double top pattern on the price chart. Analysis indicates a high likelihood of continued decline, signaling a bearish correction from the recent uptrend originating around $1.0600.
The trajectory of this correction suggests the potential for the EURUSD pair to target lower price levels. Initial targets for this bearish movement include breaking through the $1.0780 mark, followed by further declines towards $1.0713 and subsequently $1.0670.
It is crucial to note that the prevailing bearish bias is contingent upon the breach of key support levels. However, should the price manage to surpass the $1.0840 threshold, it could signal a reversal of the negative trend, prompting a return to bullish momentum.
Anticipated Trading Range
Traders should monitor the EURUSD pair within the range of $1.0710 support and $1.0850 resistance in the coming sessions.
Trend Outlook: Bearish
This analysis forecasts a bearish trend for the EURUSD pair in the immediate future, given the observed technical indicators and market dynamics.
