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EURUSD: Ready to Resume Long Positions?

EUR/USD hit its lowest level since March, dropping below the critical threshold of 1.0600 on Monday. This decline was triggered by cautious comments from Lagarde, President of the ECB, regarding the future course of economic policy, leading to a defensive stance on the euro. In parallel, the US dollar benefited from prevailing risk aversion, maintaining pressure on EUR/USD. Technical analysis reveals that EUR/USD is within a descending regression channel, while the Relative Strength Index (RSI) on the 4-hour chart remains below 50, confirming the short-term bearish trend. Key resistances are at 1.0670 (20-period Simple Moving Average) and 1.0690-1.0700 (50-period SMA, psychological level). On the downside, the most relevant support levels are 1.0630, 1.0600 (important psychological level), and 1.0580 (lower limit of the descending channel). Attention is focused on the US Manufacturing and Services PMI data by S&P Global, potentially influencing the dollar's performance. Investors closely monitor risk perception in financial markets, hoping for a potential positive reversal on Wall Street after the recent decline. In this context, a dominance of risk flows could support an extended rise in EUR/USD. A significant bullish signal is noted with the break of a significant swing low at 1.0611. We anticipate a long entry in New York, avoiding dollar trades during the announcement of macroeconomic data. Attention is high, and we appreciate comments and likes. Best regards, Nicola, CEO of Forex48 Trading Academy.