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EUR/USD looks prefer it just turned lower from a key resistance zone!

Will the pair extend its long-term downtrend in the subsequent few days?

EUR/USD 4-hour Forex Chart Chart by TradingView

In case you missed it, EUR/USD just got rejected from the 1.0900 psychological handle for a second time this month.

The pair is currently trading closer to the 1.0845 Pivot Point line that’s just under the highest of a descending channel resistance that’s been around because the start of 2024.

Let’s see if this week’s calendar events can draw in additional sellers for EUR/USD.

Uncle Sam is about to print its second estimate for the Q1 2024 GDP and word around is that we’ll see barely lower growth figures.

Meanwhile, the Euro Area is dropping a bunch of CPI data, which could either highlight the ECB’s dovish biases or reinforce “one and done (for some time)” speculations for the central bank’s policies.

Keep in mind that directional biases and volatility conditions in market price are typically driven by fundamentals. In the event you haven’t yet done your fundie homework on the U.S. dollar and the euro, then it’s time to ascertain out the economic calendar and stay updated on each day fundamental news!

If this week’s reports result in USD extending its gains against its major counterparts, then EUR/USD may gain bearish momentum following its rejection from a technical resistance area.

EUR/USD may revisit its S1 (1.0806) previous support area or head for the S2 (1.0765) zone near the 200 SMA.

But when this week’s news updates encourage pro-risk, anti-USD sentiments, then EUR/USD may revisit its 1.0900 previous highs and make a play for a possible upside breakout.

What do you’re thinking that? Will EUR/USD extend its year-and-a-half-long downtrend? Or will we see the beginning of a bullish reversal in the subsequent few days?