EUR/USD Signals a Breakdown — Could the Pair Fall Further?

Key Highlights

• EUR/USD began a renewed downturn after failing to hold above 1.2080.
• The pair slipped below a crucial bullish trend line, with prior support located around 1.1880 on the 4-hour chart.

EUR/USD Technical Outlook

On the 4-hour timeframe, EUR/USD broke beneath an important ascending trend line at 1.1880, triggering the latest leg lower. Price action also moved below the 38.2% Fibonacci retracement of the rally from the 1.1577 swing low to the 1.2083 peak.

Near-term support is seen around 1.1820, aligning with the 50% Fibonacci retracement of the same upward move. A stronger support zone for buyers could emerge near the 1.1800 level.

The key support level is positioned at 1.1770. A break below this zone could expose EUR/USD to a test of the 200-period simple moving average (green, 4-hour), followed by the 100-period simple moving average (red, 4-hour).

On the upside, any renewed advance is likely to encounter resistance near 1.1910. The first major obstacle for buyers stands around 1.1940, with an additional barrier near 1.1960. A decisive close above 1.1960 would strengthen the bullish case and potentially pave the way for a move back toward the 1.2080 area.

Sources: Aayush Jindal