EURUSD At Critical Trendline Resistance: Downtrend Resumption Or Bullish Reversal?

The EURUSD currency pair is once again facing resistance from the falling trendline visible on the 4-hour chart. This trendline will likely determine the pair’s near-term directional bias.As long as the trendline resistance holds on a closing basis, the recent rally from the 1.0600 low is expected to be viewed as a corrective bounce within the broader downtrend from the 1.0981 high. In this scenario, another leg lower in the EURUSD could potentially unfold after the current correction is complete.The first key support to watch on the downside is the 1.0750 level. A breakdown below this area could see the pair retrace back toward the 1.0723 support zone.If sellers can push the EURUSD below 1.0723, it would likely signal that the broader downtrend from 1.0981 has resumed, with the next key downside targets in the 1.0650 and 1.0600 areas.On the flip side, a bullish breakout above the falling trendline resistance could potentially trigger an upside move to test the 1.0811 resistance barrier. A move beyond 1.0811 would likely confirm that the downside move from 1.0981 has completed at the 1.0600 low.In this scenario, the next key upside objectives for the EURUSD would be the 1.0860 and 1.1000 levels.The EURUSD finds itself at an important technical juncture, with the falling trendline resistance on the 4-hour chart being the key level to watch. As long as this trendline caps any rallies, the overall technical bias will remain bearish, with the potential for another leg lower toward the 1.0650 and 1.0600 support zones after the current correction.However, a breakout above trendline resistance would be a significant technical event, likely opening the door for a more substantial recovery toward the 1.0860 and 1.1000 resistance areas as the downtrend from 1.0981 is negated.Traders will want to closely monitor the developing price action around this key trendline barrier to determine if the broader downtrend will resume or if a more meaningful bullish reversal could be underway.More By This Author:Bitcoin Extends Pullback, But Longer-Term Uptrend Remains IntactUS Dollar Extends Rally Against Japanese YenBritish Pound Breaks Key Trendline Support Against US Dollar