Ella 
EUR/USD opened sluggishly on Monday, with the entire Asian market fluctuating within a narrow range around 1.0600. Meanwhile, EUR/USD remains near the lowest levels since March hit on Friday and appears vulnerable to continuing its downward trajectory over the past two-plus months.
The dollar held near a more than six-month high and continued to be strongly supported by higher U.S. Treasury yields, as well as a hawkish outlook from the Federal Reserve and fewer expected rate cuts in 2024. In addition, the European Central Bank (ECB) introduced a dovish interest rate decision last Thursday, which suppressed the EUR/USD.
From a technical perspective, EUR/USD has fallen further from 1.1275, the 17-month high hit in July, remaining within a downtrend channel, adding to the bearish outlook for EUR/USD. This indicates that EUR/USD has established a bearish trend and also indicates that EUR/USD has minimal downside resistance. Additionally, the daily oscillator is deep in negative territory and has not yet entered oversold territory.
Therefore, the prospect of a subsequent decline towards the 1.0600 round-figure mark for EUR/USD and a subsequent fall to the ascending channel support (currently around 1.0560-1.0555) increases. Some follow-through selling in EUR/USD would signal a new downward break in EUR/USD and create conditions for EUR/USD to extend its more than two-month decline.
On the other hand, if EUR/USD rebounds above 1.0670, it will face strong resistance at 1.0700. This is followed by last week’s range-bound high around 1.0735, a clear break above which would see EUR/USD test resistance at 1.0780, which sits on the upper edge of the aforementioned channel. If EUR/USD breaks through this level and subsequently breaks through the 1.0800 integer mark, it will indicate that EUR/USD has established a short-term bottom and open room for a significant short-term rise.
