FX.co ★ sohailmazari | EUR/USD

EURUSD H4 From a technical standpoint, the current state of the EUR/USD pair indicates a weakened position. The price has dipped below the previously identified "buy zone" established earlier in the trading week and persists below critical resistance thresholds. This downtrend is accentuated by a Relative Strength Index (RSI) reading below 50, signifying a bearish momentum. Should the price persist below these pivotal resistance levels, approximately around 1.0820, and fail to breach yesterday's Point of Control (POC) – a zone characterized by heightened trading activity – further depreciation is anticipated. This downward trajectory may potentially drive the price towards 1.08, 1.0790, and conceivably even lower to the vicinity of 1.0775. Nevertheless, there exists a prospect of a temporary respite. If the price manages to surpass 1.0810 and decisively break through yesterday's POC, it could trigger buy orders, leading to a short-term uptick in prices. However, even in such a scenario, prudent traders might strategically position new sell orders at the breached resistance level, roughly at 1.0841, to capitalize on any subsequent downward movement. Despite this potential short-lived rally, the broader technical outlook remains bearish, hinting at a sustained downward trajectory for the euro in the near

term. Analyzing the current EUR/USD pair's technical landscape, it's evident that market sentiment favors a downward trend. The failure to maintain levels within the established "buy zone" signals a loss of bullish momentum, compounded by the inability to breach key resistance levels. This lack of upward movement is further corroborated by the RSI, which remains below the pivotal 50 mark, indicating prevailing bearish sentiment. Considering these technical indicators, it's reasonable to anticipate further downside pressure on the euro against the US dollar. The failure to overcome resistance around 1.0820 suggests a reluctance among traders to push the price higher, potentially leading to a continuation of the established downtrend. Moreover, the failure to decisively breach yesterday's POC underscores the prevailing bearish sentiment and could serve as a catalyst for further declines. In terms of potential price targets, a sustained downtrend could see the EUR/USD pair testing support levels at 1.08, followed by 1.0790, and potentially extending towards the 1.0775 range. These levels represent significant psychological and technical support zones, where a breach could trigger additional selling pressure. However, it's essential to remain vigilant for potential reversals or temporary rebounds in price. A decisive break above 1.0810, coupled with a breach of yesterday's POC, could signal a short-term reprieve for the euro. In such a scenario, traders might look to capitalize on the upward momentum, but with caution, as the broader technical outlook remains bearish