The EURUSD currency pair has lost its momentum after an inability to sustain its upward pattern, resulting in a breach of the lower boundary of the bullish channel on the 1-hour time frame. The failure to establish a higher high signals an initial indication that selling pressure is beginning to dominate. This situation is further reinforced by the pullback phase that formed post-breakout, suggesting the potential for continued declines in the near term. This technical pressure indicates that buyers are starting to lose control, while sellers are taking over the market’s direction.
From an indicator perspective, the ZigZag and Moving Average (MA) lines are currently trending downwards, strengthening the confirmation that the short-term trend has shifted to a bearish outlook. Additionally, the Stochastic indicator, which is situated in the overbought zone, provides an extra signal of downward pressure. This combination of technical factors indicates the likelihood for EURUSD to extend its decline towards the next support area, particularly if the price fails to breach the previously broken upper boundary of the channel.
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The EURUSD is under pressure following the formation of a bearish channel on the 15-minute time frame, indicating seller dominance in the short term. The downward trajectory of the Moving Average (MA) further reinforces the downtrend tendency, acting as a principal factor restraining the price. With the bearish momentum still intact, EURUSD is likely to continue its downward movement to test significant support levels at 1.15830 in the upcoming trading session.
Technical Reference: sell while below 1.16530
Potential Stop Loss 1: 1.16430
Potential Stop Loss 2: 1.16530
Potential Take Profit 1: 1.15940
Potential Take Profit 2: 1.15830
