The EURUSD pair failed to sustain its previous gains after breaking above the high of a bearish channel on the 1-hour timeframe. Instead of creating a new peak, the price reversed, dropping below the break area, indicating a possible false breakout. This situation suggests that selling pressure is starting to dominate the market. Furthermore, the Bollinger Bands (BB), which are now trending downward, provide additional confirmation that bearish momentum is gradually strengthening, while the zigzag structure also shows signs of a potential reversal.
Given this technical signal combination, EURUSD may face further selling pressure during today’s European session. If the decline continues and the price fails to maintain above the nearest support area, the possibility of a further weakening towards the next support level increases. Meanwhile, traders should remain cautious of any potential short-term technical rebound that might occur; however, as long as the price remains below the previous break high, the primary bias will still lean towards bearish.
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The bearish channel forming on the 15-minute timeframe signals increasing control by sellers in the EURUSD pair. The sharply declining Moving Average (MA) reinforces the indication of selling pressure, while the Stochastic indicator reversing down from overbought territory signifies that bearish momentum is becoming more solid. With these technical indicators combined, it is likely that EURUSD will continue its decline to test the crucial support level around 1.15980 shortly.
Technical Reference: sell below 1.16565
Potential Stop Loss 1: 1.16445
Potential Stop Loss 2: 1.16565
Potential Take Profit 1: 1.16090
Potential Take Profit 2: 1.15980
