The bullish structure of EURUSD appears to be weakening as the price has breached the bullish channel support area and formed a new low, indicating a shift in the short-term trend character. This break of support serves as an early signal that buyers are struggling to maintain control, while selling pressure starts to dominate the price direction. The subsequent pullback towards the broken area, which then responded with a downward movement, further emphasizes that this area has transformed into a valid resistance. This scenario suggests that the potential for a trend reversal is emerging, particularly after the price structure shifts from higher lows to lower lows.
From the indicator perspective, bearish signals are becoming increasingly apparent. The moving average (MA) beginning to trend downwards indicates a changing momentum favoring sellers, while the ZigZag pattern is forming a minor bearish structure providing additional confirmation. Additionally, the MACD residing in negative territory offers a more solid downward pressure on the EURUSD movement on the hourly timeframe. With this combination of technical signals, the chances for further decline look promising, and EURUSD may continue to weaken towards the next support area if seller pressure remains consistent.
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A bearish channel is being formed on the 15-minute timeframe, indicating a clear downward momentum for EURUSD. The MA and Zigzag indicators are showing a downward trend, confirming that the price structure is under seller pressure. Meanwhile, the CCI declining from the overbought area adds confirmation that the bearish correction momentum may continue. With this combination of technical signals, EURUSD has a strong opportunity to continue its decline and test a crucial support level around 1.16090.
Technical Reference: sell while below 1.16625
Potential Stop Loss 1: 1.166530
Potential Stop Loss 2: 1.16625
Potential Take Profit 1: 1.16195
Potential Take Profit 2: 1.16090
