Trend reversal on the EUR/USD

It is said that when an asset retraces more than 20% of its previous trend, the trend has reversed in the opposite direction. In the case of the EUR/USD we can see on the daily chart that the pair had a good rally from the 1.0350 level to the 1.0840 level from the month of December until the end of January, but then it starts to retrace to the downside. The price of the EUR/USD has already retraced 50% of that rally and we can now say that the trend has reversed to the downside. At the moment, the pair is around the 1.0600 level, which is currently acting as a support, but if it breaks that level to the downside, then the bearish momentum may accelerate and the pair may drop to the 1.0400 level. In case the pair breaks above the bearish trendline, then it could go and visit the 1.0700 level, which is possible to act as a resistance, but at the moment the bearish momentum is still in place.