The pair is in a strong monthly and weekly down trend but correcting on a strong support zone as shown in Fig 1. Break of the trend line resistance can lead to the retest of the key resistance zone and break of the key support zone can lead to resumption of the major down trend.
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| Fig 1; Daily chart of EURUSD |
The current daily down trend is hugging the 21SMA as it moves into a key support zone with less momentum hence, a bounce off the zone may be expected
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