EURUSD Downtrend Continues Amidst Bearish MomentumThe downtrend in EURUSD persisted last week, with strong resistance at the 1.080 level failing to propel the Euro higher. Currently trading at 1.073, marking a 0.11% decrease for the day, EURUSD exhibits signs of a forming pattern, as indicated on the 1D chart.
In a downtrend, the 1.080 resistance level may react similarly. Theoretically, unless EUR maintains solid upward momentum above 1.070, we may witness significant downward pressure as bearish sentiment prevails.
In the context of a strengthening US dollar, this corresponds to a downward reaction from the Euro. However, given the volatile nature of today's news, contradictory reactions are possible, creating perplexing responses, provided it fails to sustain the mentioned support level, triggering substantial downward pressure.
In the short term, I anticipate price testing previously breached resistance, though it may not hold for long upon approach. Evidence suggests that upon touching resistance, downward movement persists, indicated by the unchanging EMA line.
