EUR/USD is trading in a key area. Will it start to rebound or continue to fall?

EUR/USD previously we drew an uptrend line based on the bottom this way and we mentioned that if the price broke the last bottom downwards and stayed below it we would see a descending wave and this is what actually happened✅

After breaking out of this area, the price returned to test before falling directly in a bearish wave, reaching the support area marked in blue, where the price currently sits at the 1.16 level 🔵

This area is considered a critical and very important area for the EUR/USD pair:

🔹If the price remains above the 1.16 area, we may see an upward wave and an aggressive rebound.

🔹If the price breaks below this area and remains below it, we will see further declines and a continuation of the downtrend that started from the 1.18500 level, with the decline likely to extend towards the 1.14500 area 📉

Currently, as prices remain above the 1.16 support area, we are monitoring the formation of a possible upward rebound buying opportunity.

We also noticed that price formed a downtrend line off the peak and was able to penetrate that trend upwards via a gap or price gap that appeared at the start of the week 🟢

But this bullish gap is expected to be retested by price, so we wait for this area to be retested and then we monitor the formation of buying opportunities on small frames such as the half hour and quarter hour.

✅ If the buying opportunity is confirmed, a buy trade can be entered and a sustained upward rebound from this area is possible.

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