The EURUSD pair is currently experiencing increased selling pressure after struggling to maintain upward momentum above the bearish resistance channel. Despite briefly breaking through the upper boundary of the channel, prices failed to establish a new high and instead sharply reversed back into the downward trend area. This situation indicates a weakening buying force, allowing sellers to regain control. The movement reverting into the bearish channel serves as a strong signal that the technical structure still supports ongoing declines, especially as we approach the evening session.
From a technical perspective, the Bollinger Bands (BB) are showing a clear downward trend, which aligns with the ZigZag pattern that is starting to form a new lower high and lower low. This combination reinforces the idea that bearish momentum is currently active, and the potential for further weakening remains open. As long as the price stays below the resistance channel and cannot break through its upper boundary, the EURUSD is likely to continue its decline, aiming to test the next support area in the coming hours.
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On the 15-minute timeframe, the established bearish channel further emphasizes the dominance of sellers in the EURUSD movement. The sharply declining Moving Average (MA) line indicates an increasingly strong selling pressure, while the Stochastic indicator, turning down from overbought territory, signifies that the bearish momentum is becoming more solid. With this technical signal support, the EURUSD pair looks poised to continue its descent to test an important support level around 1.15550.
Technical Reference: sell while below 1.16200
Potential Stop Loss 1: 1.16080
Potential Stop Loss 2: 1.16200
Potential Take Profit 1: 1.15645
Potential Take Profit 2: 1.15550
