EURUSD Break above 1.0790 essential to affirm a phase of rebound

EUR/USD has extended its downtrend after breaking below the trend line drawn since 2000. This violation has led the pair towards the lows of 2016/2017 near 1.0340. It did witness an initial bounce in May and in the recent wave of decline as well, it has defended this support, forming a possible double bottom. The pattern points towards potential upside, although the neckline at 1.0790/1.0810, which is also the low of March, is an important resistance. So long as crossover beyond this doesn’t materialize, the downtrend is expected to persist. Failure to defend 1.0340 would affirm a continuation in decline. The next potential objectives could be at 1.0070/1.0000, the 76.4% retracement of the whole uptrend during 2000 and 2008.