EurUsd- 1.07-1/0720 zone, line in the sand for future direction

May 9

Since the beginning of the year, EURUSD has been in a downtrend. Despite occasional reversals from the lows, a broader examination reveals a pattern of lower highs.

Recently, once again, EURUSD reversed from the 1.06 zone low, but its ascent was halted just below the descending trend line, followed by a resumption of the downward movement.

Moreover, the recent rise forms a bearish flag pattern, further reinforcing the overall bearish sentiment.

Key support lies at the 1.07 zone, and a breach here could initiate a new downward movement. Subsequently, the next significant support levels are at 1.06 and 1.05.

My bearish outlook persists as long as the price remains below 1.0820.