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EUR/USD looks like it just turned lower from a key resistance zone!
Will the pair extend its long-term downtrend in the next few days?
EUR/USD 4-hour Forex Chart Chart by TradingView
In case you missed it, EUR/USD just got rejected from the 1.0900 psychological handle for a second time this month.
The pair is currently trading closer to the 1.0845 Pivot Point line that’s just below the top of a descending channel resistance that’s been around since the start of 2024.
Let’s see if this week’s calendar events can draw in more sellers for EUR/USD.
Uncle Sam is about to print its second estimate for the Q1 2024 GDP and word around is that we’ll see slightly lower growth figures.
Meanwhile, the Euro Area is dropping a bunch of CPI data, which could either highlight the ECB’s dovish biases or reinforce “one and done (for a while)” speculations for the central bank’s policies.
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your fundie homework on the U.S. dollar and the euro, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
If this week’s reports lead to USD extending its gains against its major counterparts, then EUR/USD may gain bearish momentum following its rejection from a technical resistance area.
EUR/USD may revisit its S1 (1.0806) previous support area or head for the S2 (1.0765) zone near the 200 SMA.
But if this week’s news updates encourage pro-risk, anti-USD sentiments, then EUR/USD may revisit its 1.0900 previous highs and make a play for a potential upside breakout.
What do you think? Will EUR/USD extend its year-and-a-half-long downtrend? Or will we see the start of a bullish reversal in the next few days?
