Will EUR/USD End Its Downtrend? Article Sponsored by CloseOption Broker

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Will EUR/USD End Its Downtrend? Article Sponsored by CloseOption Broker

 
The key support and resistance level ahead for EUR/USD is as follows:
 
• Third Key resistance level of EUR/USD: 1.04340
• Second Key resistance level of EUR/USD: 1.03900
• First key resistance level of EUR/USD: 1.03435
• First key support level of EUR/USD: 1.02783
• Second Key support level of EUR/USD: 1.02250
• Third Key support level of EUR/USD: 1.01782
 
Will EUR/USD End Its Downtrend?
 
As mentioned in the previous analysis of the EUR/USD pair dated 2025.02.04, the price could rise to the key levels of 1.04200 and 1.05000, with buyers already touching the first level.

The market has been ranging since the beginning of the year, and traders have experienced uncertainty. This is reflected in the formation of a spinning top candlestick pattern on the monthly timeframe.

Based on the recent price movements, the overall long-term trend remains bearish. However, the first signs of its weakening have started to appear on the chart. Some of these signs include:

The formation of a spinning top candlestick on the monthly timeframe (at the 61.8% Fibonacci retracement level).

The inability of the price to break below the 1.02250 support level last week (indicating sellers' failure to push the price lower).

The monthly and weekly charts show a relatively oversold condition (meaning the market is weak but not strongly oversold).

Suppose the price stabilizes above the key level of 1.03435 (on the daily or 4-hour chart). In that case, bullish probabilities will strengthen, and buyers will attempt to push the price toward resistance levels of 1.039 and up to, in a more aggressive scenario, 1.04340.

On the other hand, in a bearish scenario, if the price breaks below the 1.02783 support level, it could decline further toward the 1.02250 support level and, subsequently, down to 1.01782.
 

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