The hourly chart for EURUSD is beginning to exhibit signs of a trend reversal from bullish to bearish. The breaklow within the bearish channel serves as the initial trigger for this directional shift, indicating that buyers are losing their grip on the market. The price structure forming Lower Highs (LH) and Lower Lows (LL) further underscores the growing bearish pressure. This indicates that the momentum for sellers could potentially take over in the short term.
Additionally, the downward trajectory of the Bollinger Bands (BB) reinforces bearish signals. The widening of the bands to the downside suggests an increase in volatility skewed towards selling pressure, creating room for the EURUSD to continue its downward movement. If the bearish pressure persists, the prices could test the next support area, solidifying the view that the downward trend is likely to continue in the near term.
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The ascending triangle pattern present on the 15-minute time frame indicates the potential direction for EURUSD moving forward, yet selling pressure remains strong, as evidenced by the declining moving average (MA) and the MACD positioned in negative territory. This technical combination suggests further downward movement is possible for EURUSD, aiming to test the support level around 1.17070.
Technical Reference: sell while below 1.18220
Potential Stop Loss 1: 1.18020
Potential Stop Loss 2: 1.18220
Potential Take Profit 1: 1.17170
Potential Take Profit 2: 1.17070
