The EURUSD pair has shown a temporary increase in recent trading sessions; however, this upward movement appears to be quite limited. Despite a brief rise in prices, the Moving Average (MA) indicator reflects a significant decline, suggesting that selling pressures remain prevalent in the market. The downward trajectory of the MA reinforces the likelihood of further weakening, indicating that the market is still aligning towards lower prices, thereby constraining any potential increases. With the price trapped within a bearish channel, it is highly probable that this upward movement is merely a fleeting occurrence.
Moreover, the MACD indicator further emphasizes the bearish outlook. The MACD histogram positioned below the signal line highlights that negative momentum is gaining strength. Should the price fail to breach the nearest resistance level and remain under selling pressure, the EURUSD could continue its descent towards the next support level.
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Currently, the EURUSD is positioned at the upper boundary of the Bollinger Bands, indicating that prices have reached an overbought state and are at risk of a correction. Coupled with Stochastic indicators indicating an overbought condition, there exists potential for further weakening as the bullish momentum seems to be waning. If selling pressures begin to intensify, this currency pair may face a decline towards the next support level at 1.07695.
Technical Reference: sell when below 1.08665
Potential Stop Loss 1: 1.08500
Potential Stop Loss 2: 1.08665
Potential Take Profit 1: 1.07840
Potential Take Profit 2: 1.07695
