Crucial Moment for EUR/USD as Ascending Channel Faces Test

The EUR/USD pair finds itself once again testing the lower boundary of its well established ascending channel. This channel kicked off in early 2023 and has held firm ever since.
This week will be important to see if a break in this pattern occurs and a new downward trend begins. Traders are eagerly awaiting a breakout from the channel, which could occur in either direction depending on the weeks ahead.

If the EUR/USD pair breaks down from the channel, we’ll consider the possibility of a retest of the channel’s support before anticipating a continuation of the downtrend. However, if the EUR finds strength, price could bounce nicely and start to head back up towards the upper boundary of the channel.

In terms of the economic calendar, this week is relatively quiet in terms of major US news releases, although key data such as unemployment figures could still influence the market. In the Eurozone, inflation data is scheduled for release throughout the week. These data points will be crucial in determining the direction of the EUR/USD pair in the days ahead, so worth keeping in mind.

With price currently at a key technical level, all eyes will be on the coming few days to see if the channel will hold once again, or if it finally breaks.