EUR/USD: Lower Highs and Lower Lows Reflect Bearish Channel

In the lower timeframe, the EUR/USD pair is currently confined within a bearish channel, characterized by a consistent pattern of lower highs and lower lows. Today, the market opened with a bullish impulse, leading to an upward movement in the price. However, it is worth noting that the price has now approached the significant 78.6% Fibonacci retracement level around the 1.07100 area. This level presents a crucial resistance zone, and there is a possibility of a new bearish impulse materializing, potentially causing a decline in the pair's value and extending the existing downtrend.

Considering the prevailing market conditions, we are observing a bearish setup that suggests the likelihood of the downtrend continuing. Traders and investors should remain vigilant for any signs of bearish price action and additional technical confirmations to validate this potential scenario.

As always, it is important to exercise caution and conduct thorough analysis before making any trading decisions.