The EURUSD reversed strongly from the 1.0925 resistance level toward the end of last week, as the DXY strengthened.
Breaking through the bullish trendline, the EURUSD traded down toward 1.07 (which coincides with the 50% Fibonacci retracement level) before consolidating along the current support level of 1.0765.
With the EURUSD consolidating at the moment, look for a potential breakout to the downside to signal a continuation of the recent downtrend.
However, look for the EURUSD to break below 1.07 to indicate a confirmation of the downside, with the next subsequent support levels at 1.0630 and 1.0525.
Alternatively, if the DXY weakens, the EURUSD could bounce off the current support level to trade up toward the 1.09 price level again.
Breaking through the bullish trendline, the EURUSD traded down toward 1.07 (which coincides with the 50% Fibonacci retracement level) before consolidating along the current support level of 1.0765.
With the EURUSD consolidating at the moment, look for a potential breakout to the downside to signal a continuation of the recent downtrend.
However, look for the EURUSD to break below 1.07 to indicate a confirmation of the downside, with the next subsequent support levels at 1.0630 and 1.0525.
Alternatively, if the DXY weakens, the EURUSD could bounce off the current support level to trade up toward the 1.09 price level again.
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