Support/resistance has now been decisively broken.EUR/USD Technical Analysis – Daily Timeframe Overview
Disclaimer: This content is for educational and informational purposes only. It is not intended as financial advice. Please conduct your own research (DYOR) before making any trading decisions.
The EUR/USD pair has recently shown a notable technical development on the daily chart. A key trendline that has previously acted as dynamic support/resistance has now been decisively broken. Following the breakout, the price action has returned to retest this trendline from below—a common behavior that traders often refer to as a "break-and-retest" setup.
Adding further weight to this area is the presence of a breaker block, which is overlapping with the retesting zone. This convergence of technical structures increases the probability of a bearish rejection from this level. Should the market respect this zone as resistance, we can expect a potential downward move targeting the nearest Fair Value Gap (FVG), which has been highlighted on the chart.
However, traders should also consider a contingency scenario. If the FVG fails to act as a price magnet or support zone, further downside pressure could take the pair toward lower levels—specifically, the recent swing lows, which may serve as the next major support area.
This scenario aligns with the current market momentum and structure, but as always, price action confirmation and risk management are crucial.
