The EURUSD has experienced a significant directional change after failing to maintain its bullish structure on the 1-hour timeframe this evening. A considerable corrective pressure has caused the price to breach a critical daily support level, effectively breaking the previous bullish channel that supported the upward movement. This situation strongly indicates a weakening dominance of buyers, as the market gradually shifts towards a more negative sentiment. This movement reflects a transition phase where sellers are beginning to gain control.
Bearish pressure has become increasingly evident through technical signals that support price weakening. The Zigzag pattern is currently forming lower highs and lower lows, while the Moving Average (MA) begins to point downwards in line with selling momentum. The combination of these indicators clearly illustrates a significant trend change. As long as EURUSD remains below the breached support area, the potential for further declines remains wide open, especially if buyers do not exhibit a more aggressive response.
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On the 15-minute timeframe, the development of a bearish channel provides additional confirmation that the downward pressure dominates short-term movements. The MA and Zigzag moving downward consistently bolster the bearish technical structure, while the CCI indicator falling from the overbought region signals that the correction momentum remains strong. With a series of aligned technical signals, EURUSD has opportunities to continue its decline and test important support around the 1.16185 level.
Technical Reference: sell while below 1.16765
Potential Stop Loss 1: 1.16650
Potential Stop Loss 2: 1.16765
Potential Take Profit 1: 1.16230
Potential Take Profit 2: 1.16135
