EURUSD Analysis: Bearish Trend is Likely To continue
The Euro trades around 1.082 against the U.S. Dollar in Wednesday's trading session, stabilizing itself below the broken ascending trendline, as illustrated in the 4-hour chart. This breakout could be interpreted as either a temporary or long-term shift in market direction, transitioning from a bull to a bear market.
Furthermore, as the EURUSD tests the 38.2% Fibonacci support level, technical indicators suggest that the decline, which began from the 1.0865 higher low, is likely to continue.
Therefore, from a technical standpoint, with the price maintaining its position within the bearish flag, depicted in black lines, the bear market is expected to extend and potentially test the 50% Fibonacci support, followed by the 61.8% level.
Conversely, the 1.0866 level acts as resistance. The bearish outlook should be invalidated if the EURUSD price crosses above this level.