EUR/USD Technical Breakdown: Why 1.0700 Support Level Matters Now? | Key Chart Patterns & Trading Signals
EUR/USD Faces Critical Juncture Below Psychological 1.0700 Level
The trump coin crypto priceEUR/USD currency pair continues to exhibit bearish characteristics during Thursday's Asian trading session, hovering near 1.0690 after retracing earlier losses. Market participants are closely monitoring the pair's interaction with a crucial support zone around 1.0670, which represents a make-or-break level for short-term price direction.
Technical Indicators Paint Bearish Picture
Several technical factors currently weigh on the EUR/USD exchange rate:
- The 14-day Relative Strength Index remains trapped below the neutral 50 level, signaling persistent selling pressure
- Price action remains confined within a clearly defined descending channel on daily timeframes
- The 14-day Exponential Moving Average at 1.0732 continues to cap upward movements
Potential Support and Resistance Levels
Traders should watch these key technical levels in coming sessions:
Downside Targets:
- Immediate support at 1.0670 (recent swing low)
- Channel support near 1.0640 if breakdown occurs
Upside Barriers:
- Initial resistance at 1.0732 (14-day EMA)
- Psychological resistance at 1.0800
- Channel resistance and June 4 high at 1.0915
Market Sentiment and Trading Strategy
The current technical setup suggests traders should consider:
- Waiting for confirmation of breakdown below 1.0670 before adding short positions
- Monitoring RSI for potential oversold conditions that might signal temporary rebounds
- Watching for bullish reversal patterns near channel support for counter-trend opportunities
As always, proper risk management remains essential when trading currency pairs exhibiting clear directional bias within technical patterns. The descending channel formation suggests the path of least resistance remains downward until proven otherwise.