Hello traders. During the recent strong decline of the US dollar across the market, the European currency managed to rise and break the medium-term downtrend channel, breaking through and rising significantly above its upper boundary. As a result, the EUR/USD pair reached a resistance test at 1.1760 during the uptrend, but considering the news-driven nature of this rise related to Trump's actions reshaping the world, I believe that the price will soon return to a decline once the passions subside. As we can see, the bears have already managed to lower the price of the EUR/USD to the support at 1.1715, and judging by the position of the H4 stochastic, they may continue the movement towards the support at 1.1680. However, in this area, a new upward zigzag should emerge, as during this time the stochastic will reach its lower boundary and indicate an oversold condition of the pair. Therefore, already in a measured and wave-like movement, the EUR/USD pair will now decline with the main goal of breaking below the 55-period moving average line, which will allow it to return to the realm of the downtrend.
