The movement of EURUSD is displaying a consistent continuation of selling pressure, as the Bollinger Bands (BB) continue to trend downward, and the Zigzag indicator is persistently forming lower highs and lower lows on the hourly chart. These two technical signals reinforce the notion that sellers remain firmly in control, while the price has yet to provide convincing signs of a reversal. This situation illustrates that market participants are likely to maintain their short positions after several failed attempts to break through the dynamic resistance zone. With the trend structure still showing a downward trajectory, bearish momentum appears to be stable.
As we approach the European session this afternoon, the potential for further declines remains open as long as the price stays below the middle line of the Bollinger Bands and fails to break through the nearest resistance zone. Should selling pressure persist, EURUSD may test the next support level, which is currently the focal point for short-term traders. Conversely, if a corrective upward movement occurs, it is likely to be merely technical and insufficient to alter the main trend direction. Given these circumstances, the bias remains tilted towards the negative.
Recommended
Recommended
Recommended
Recommended
On the 15-minute time frame, the formation of a bearish channel further clarifies the sellers’ dominance over the EURUSD movement. The sharply declining Moving Average (MA) strengthens the signal of ongoing selling pressure, while the Stochastic indicator reversing downward from the overbought area indicates an increasingly solid bearish momentum. The combination of these various technical signals opens the door for this pair to further weaken towards a key support level at 1.15840 in the near term.
Technical Reference: sell below 1.16265
Potential Stop Loss 1: 1.16185
Potential Stop Loss 2: 1.16265
Potential Take Profit 1: 1.15920
Potential Take Profit 2: 1.15840
