After breaching the lower boundary of a bearish channel, the EURUSD has displayed a strong continuation of the downtrend. The price structure is now forming a double top pattern on the 1-hour time frame, which is recognized as a reversal pattern signaling a downward shift. The inability of prices to break through the same resistance level consecutively signals that buying pressure is beginning to diminish, while sellers are starting to gain control in the market.
Additionally, the Commodity Channel Index (CCI) on the same time frame indicates an overbought condition, suggesting that prices have reached a saturation level and may be poised for a correction or reversal. With this combination of technical signals—breaking the low of the channel, the double top pattern, and a CCI plunging from extreme levels—the EURUSD is considered to still have room to continue its decline in the near future.
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The movement of EURUSD on the 15-minute time frame indicates potential weakening in the short term. The horizontal zigzag pattern reflects a decrease in upward momentum, while the Moving Average (MA) line is beginning to tilt downward, signifying a gradual increase in selling pressure. This combination of signals suggests that EURUSD may continue its decline toward testing the support level of 1.14825.
Technical Reference: sell as long as it remains below 1.15660
Potential Stop Loss 1: 1.15445
Potential Stop Loss 2: 1.15660
Potential Take Profit 1: 1.14900
Potential Take Profit 2: 1.14820
