The formation of a descending triangle is emerging on the 1-hour timeframe, signaling that EURUSD is currently experiencing significant selling pressure. This pattern is recognized as a continuation trend (continuous trend pattern) which typically suggests that bearish tendencies are beginning to take hold, particularly if the lower boundary of the pattern is breached. If the decline persists below crucial support levels, there is greater potential for EURUSD to fall deeper.
Moreover, technical indicators reinforce this potential weakness. The zigzag indicator reflects a bearish structure, indicating that the downtrend is still ongoing, while the MACD residing in the negative territory heightens selling pressure. The convergence of the descending triangle pattern, the confirming zigzag signal, and the negative momentum on the MACD strengthen the bearish outlook for EURUSD in the short term, with the market potentially testing nearby support levels as a decisive point for the next direction.
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The bearish trendline formed on the 15-minute timeframe indicates that seller dominance is strengthening, corroborated by the Moving Average still trending downward. The zigzag pattern also emphasizes a bearish tendency with repeated selling attempts to break through significant support at the intraday level. Given this combination of technical signals, EURUSD is likely to continue its downward trajectory, preparing to test the crucial support area at 1.15795.
Technical Reference: sell when below 1.16570
Potential Stop Loss 1: 1.16400
Potential Stop Loss 2: 1.16570
Potential Take Profit 1: 1.15920
Potential Take Profit 2: 1.15795
