EUR/USD: Recovery or Further Fall?

4 days agoThe EUR/USD 4-hour chart shows a clear downtrend, with lower highs (LH) and lower lows (HL), indicating a downtrend. However, recently, the price has shown signs of a minor recovery, especially after touching the strong support area around 1.1000.

The Fibonacci levels drawn from the recent high to the recent low indicate that the price is attempting to break the 0.5 Fibonacci retracement level. A successful break above this level could push the price to test the next 0.618 Fibonacci level, located around 1.1100. This is an important area with old resistance and could hinder the price's upside momentum.

On the other hand, the nearest major support level for EUR/USD is around 1.1000, an area that has been a bottom in the past and could once again prevent further declines. If the price breaks this support level, it could see a fresh sell-off, pushing the price even lower.