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It looks like the EUR/USD pair has just fallen off the key Resistance zone!
Will the pair continue its long-term downward trend in the next few days?
EUR/USD 4-hour Forex chart Chart by TradingView
In case you missed it, the EUR/USD pair was just rejected from the 1.0900 psychological level for the second time this month.
The pair is currently trading near the 1.0845 pivot point line which is below the top of the bearish channel resistance that has been in place since the beginning of 2024.
Let's see if this week's calendar events can attract more sellers of the EUR/USD pair.
Uncle Sam is about to print his second GDP estimate for the first quarter of 2024, and talk is that we will see slightly lower growth numbers.
Meanwhile, the euro zone is dropping a set of CPI data, which could either highlight the ECB's dovish biases or reinforce “updated (for a while)” speculation about the central bank's policies.
Remember that directional biases and volatility conditions in market prices are usually driven by fundamentals. If you haven't done your financial homework on the USD and EUR yet, it's time to check the economic calendar and stay up to date with daily essential news!
If this week's reports lead to the US dollar extending its gains against its major counterparts, the EUR/USD pair could gain downside momentum after being rejected from the technical resistance zone.
EUR/USD may revisit the previous support area S1 (1.0806) or head to the S2 area (1.0765) near the 200 SMA.
But if this week's news updates encourage risk-on, anti-USD sentiment, EUR/USD could revisit previous highs at 1.0900 and seize the opportunity for a potential bullish breakout.
what do you think? Will EUR/USD continue its year-and-a-half downward trend? Or will we witness the beginning of a bullish reversal over the next few days?
