EURUSD retesting broken downtrend line


The EURUSD pair was trading down 0.3% on Tuesday, and it was seen at around 1.1280 at the time of writing. 

The pair returned to retest the broken, bearish trend line, which was near 1.1260. That is the critical support, and the euro needs to stay above this trendline for the medium-term outlook to remain bullish. 

If the price drops below this level, the short-term trend will most likely change to bearish as stop losses will be hit, and the pair could decline toward the next key support area near the 1.12 threshold. 

On the other hand, the intraday resistance could be near 1.13, and if broken to the upside, the next level to watch will be at this week's highs of 1.1340.

Fundamentally, the EURUSD pair might remain in the uptrend as the Fed is more aggressive in its easing policies. However, the pair is sensitive to shifts in sentiments, and if risk-off trading reappears, the greenback should be bid, which will most likely drag the pair down. 
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