The EURUSD currency pair is experiencing significant selling pressure during tonight’s trading session, highlighted by the formation of a bearish Lower High – Lower Low (LH–LL) pattern on the 1-hour timeframe. This structure indicates that sellers have maintained complete control since the start of the session, with any attempts at a rebound thus far resulting merely in minor corrections before further declines. The moving average (MA) continues to trend downward, reinforcing the notion that bearish momentum remains prevalent and shows no signs of considerable weakening.
This pressure is further validated by the ZigZag indicator, which consistently depicts a continuous downtrend, confirming that buyers have thus far been unable to counteract the strength of the sellers. As long as the price remains below the MA and fails to establish a new bullish structure, the likelihood of continued declines remains very high. Market participants are now anticipating the release of U.S. economic data, which could potentially increase volatility and strengthen the direction of the dollar. Should the sentiment towards the dollar strengthen, EURUSD risks continuing its decline towards the next support level.
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On a 15-minute timeframe, the EURUSD movement also reflects additional selling pressures, as prices stabilize within a bearish channel. Although the MA appears to be flattening somewhat, it still indicates a downward trend, illustrating that selling momentum continues to dominate the market. The Commodity Channel Index (CCI) being in overbought territory signals that further declines could happen soon as sellers prepare to reclaim control. With this technical combination, EURUSD has a significant chance to continue its descent and test the key support level at 1.14795.
Technical Reference: sell while below 1.15565
Potential Stop Loss 1: 1.15425
Potential Stop Loss 2: 1.15565
Potential Take Profit 1: 1.14925
Potential Take Profit 2: 1.14795
