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EUR/USD has an awful 48 hours and there is no mercy at sight. The not-too-dovish FOMC decision, and the very weak European inflation data sent the pair tumbling down.

And now, the pair is approaching a line that consistently provided support for quite a few times. Is this an opportunity to bounce back? A break below this line could turn into an avalanche. Here is how it looks on the chart:

EUR USD Technical chart November 1 2013 uptrend support getting close forex trading

The line was formed in June and worked perfectly well in August as uptrend resistance. The pair eventually broke above this line and it switched from resistance to support.

Several attempts to break back below the line failed during September and October, with the pair eventually shooting higher in a steep channel (also shown on the chart).

After EURUSD couldn’t hold onto the steep uptrend channel, it fell quite quickly.

Further support appears at 1.35, followed by 1.3460 and 1.3415. Resistance is at 1.3570.

For more, see the EUR/USD forecast.