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The EUR/USD pair resumed its decline from 1.2081 last week, breaking below the 1.1506 level, signaling a continuation of the bearish trend. Technical analysis suggests a target of the 38.2% Fibonacci retracement at 1.1353, with a potential next level at the 61.8% projection of 1.0904 if the 1.1353 level breaks firmly. The near-term outlook remains cautiously bearish as long as the 1.1666 resistance level holds, which could act as a critical barrier for any potential reversal.
For forex traders, the breakdown below key support levels like 1.1506 and 1.1353 represents a high-probability trade opportunity. The 1.1666 resistance is a pivotal level to monitor, as a sustained break above it could shift the bias to bullish. However, the current bearish momentum suggests that traders should prioritize short positions or consider hedging strategies against further declines.
The broader implications for global forex markets hinge on the EUR/USD's ability to hold below 1.1353. If the 1.1666 resistance remains intact, the pair could test 1.0904, impacting related assets like the USD/CHF and EUR/GBP. Traders should also watch for economic data from the Eurozone and the U.S., which could influence the pair's trajectory in the coming weeks.
