The EURUSD has faced considerable pressure following the buyers inability to maintain a bullish trend structure. The breach of the low in the bullish channel signals the initial shift towards a stronger influence from sellers. The price has also formed a new lower level and retraced before continuing its downward motion. This situation has led to the development of a minor bearish trend, as indicated by the red channel, signifying that the downward momentum is now ruling and increasingly impacting the EURUSD movement during this afternoon session.
Technical signals further reinforce this bearish outlook. The Zigzag indicator has started to reveal a downward pattern, aligning with a Moving Average that is trending downwards, confirming a shift in the trend structure. Moreover, the overbought condition on the CCI provides additional confirmation that the downward pressure is likely to persist. With this array of technical signals supporting each other, the EURUSD runs the risk of extending its decline unless buyers manage to reclaim the key area that has been breached.
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Bearish channel continues to accompany the drop in EURUSD on the 15-minute time frame, indicating that the seller’s pressure remains dominant. Although the MA has leveled off, its direction still trends downward, emphasizing that the bearish trend has yet to show signs of weakening. Conversely, the CCI’s position in the overbought territory signals the potential for continued downward pressure following a limited pullback. With this combination of technical factors, the EURUSD is poised to extend its decline towards testing the support area at 1.15630.
Technical Reference: sell while below 1.16125
Potential Stop Loss 1: 1.16010
Potential Stop Loss 2: 1.16125
Potential Take Profit 1: 1.15745
Potential Take Profit 2: 1.15630
