On Tuesday (November 3), the key factor driving market direction was the sharp decline in US stocks. Stock market declines are usually accompanied by a stronger dollar, but this was not the case today—the US dollar index was falling. The core question facing traders now is: has the long-term downtrend ended, or is there still room for further decline, potentially retesting the long-term low less than 100 points away? Fundamental Analysis The Euro's fundamentals are mixed: persistently high inflation supports the European Central Bank's (ECB) tight monetary policy, while rising energy costs threaten economic growth. The ECB kept interest rates unchanged on October 29 (after hikes in June and September), but warned that a worsening energy shock could push inflation above the 2% target level for several quarters, limiting room for further easing. Resilient service sector activity and government infrastructure and defense spending provide some support, but rising financing costs and weak consumer confidence constrain the economic recovery. The US Dollar's fundamentals are also mixed: persistent inflation keeps the possibility of another Fed rate hike alive, while the Fed's patient stance and soft short-term Treasury yields limit its short-term appeal. The Fed kept interest rates in the 3.75%–4.00% range on October 28, despite two policymakers favoring a rate hike, highlighting continued concerns about price pressures. However, slowing wage growth and doubts about the sustainability of AI investment are increasing downside risks to consumer spending and economic momentum, potentially limiting further tightening. We hold a balanced view, so the slowdown in bearish momentum is reasonable, and a deeper correction, or even the end of the downtrend, is becoming possible. (Technical Analysis) (EUR/USD 1-hour chart source: FX678) The price action over the past few days has turned bullish. A large hourly pinbar rejected the price near the 1.1100 level (a 17-month low) and turned bullish at the New York open. We then saw a clear first higher low at 1.1150, a key support/resistance level to watch. A higher high followed, rejected at the 1.1226 resistance level, where we are currently in a pullback wave. This recent bullish move suggests that traders are willing to abandon the long-term bearish trend for at least some time and are betting on a deeper bullish pullback with some confidence (though not strong). Key levels to watch are the 1.1226 resistance and the 1.1171 and 1.1150 support levels. This pair is prone to deep pullbacks within trends, has historically been very trend-driven, and is currently in a strong long-term bearish trend. My view on EUR/USD: Short-term long positions on rebounds from support levels might yield good results. However, since the long-term downtrend remains valid below 1.1300, I will still favor short positions – therefore, entering a short position when a bearish rejection signal appears at 1.1226 might be a good option. Risk: 0.75%. Positions can only be opened before 5 PM London time today (1:00 AM Beijing time).