The EURUSD currency pair is showing significant signs of potential further decline following the emergence of a divergence signal that suggests a decrease in momentum. Divergence occurs when the price reaches new highs while momentum indicators, such as MACD or RSI, fail to follow suit, indicating a possible reversal. In this scenario, the 24-period Moving Average (MA) also reflects signs of weakness, with the price starting to move beneath this average.
Should selling pressure continue to escalate, this pair risks testing the next support level, which could pave the way for a deeper decline. Conversely, to invalidate this bearish outlook, EURUSD must break back above the 24-period MA and maintain a consistent position above it.
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The EURUSD is likely to weaken following the formation of a bearish channel on the 15-minute time frame, indicating a short-term downward trend. Selling pressure is intensifying as the 24-period Moving Average (MA) shows a sharp decline, indicating the presence of sellers in the market. If this pressure persists, EURUSD could test the nearest support area at 1.07960.
Technical Reference: sell while below 1.08740
Potential Stop Loss 1: 1.08615
Potential Stop Loss 2: 1.08740
Potential Take Profit 1: 1.08060
Potential Take Profit 2: 1.07960
