The EURUSD currency pair remains ensnared in a pronounced downward trajectory, consistently battling to regain its footing. Despite recent efforts to rebound, the currency pair faces formidable resistance at the pivotal descending trendline, suggesting the bearish momentum is far from waning. After soaring to an impressive 18-month high at 1.1275, EURUSD has since been on a discernible decline, characterized by a consistent pattern of diminishing peaks and troughs. While there was a glimmer of recovery when the pair found some support at a 10-month nadir of 1.0447, its resurgence was promptly stymied upon colliding with the critical descending trendline, delineating its recent string of lower peaks.
As we glance towards potential future scenarios, should the bearish momentum exert further downward pressure, the immediate support to watch would be September's benchmark of 1.0487. Breaching this level might lead EURUSD to retest its 10-month low at 1.0447. A sustained decline beyond this point might steer the currency pair into the November 2022 support realm anchored at 1.0289.
Conversely, if EURUSD manages to rally and buck the prevailing downtrend, it could initially grapple with the resistance posed by the descending trendline. Beyond this hurdle lies another potential resistance zone at 1.0638. Should the bulls mount a successful charge past this barrier, their sights might be set on the September ceiling at 1.0765. Yet, even this ascent could face challenges, as the June-July support zone around 1.0832 may metamorphose into a robust resistance front.
To encapsulate, the EURUSD's journey appears mired in a medium-term bearish tapestry. Its recent attempt at resurgence met a premature end, underscoring the significance of transcending its primary descending trendline to rekindle hopes of a robust recovery among bullish traders.