The EURUSD pair has failed to sustain its bullish structure after experiencing a significant correction on the 1-hour timeframe, breaking through the nearest daily support level. This decline has also disrupted the previously established bullish channel, signifying a shift in market dynamics. The selling pressure is becoming increasingly dominant, suggesting that buyers are losing control in the short term. The weakening technical structure indicates that the market may be entering a transitional phase towards a more bearish trend.
Support from technical signals further reinforces this downward movement. The Zigzag indicator has begun to form a pattern of lower highs and lower lows, while the Moving Average (MA) appears to weaken, turning downward in response to seller pressure. This combination serves as an early indication that bearish sentiment is developing. As long as the EURUSD remains below the broken support area, the prospect for continued weakness may expand in the next sessions, especially if there are no significant recovery efforts from buyers.
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A bearish channel is starting to take shape on the 15-minute timeframe, indicating a clear change in momentum towards a decline in the EURUSD. The MA and Zigzag indicators are showing a cohesive downward trend, reinforcing that the price structure is under seller pressure. Meanwhile, the CCI moving down from the overbought territory adds further confirmation that the bearish correction momentum might continue. With this combination of technical signals, EURUSD has a strong likelihood of continuing its decline and retesting a crucial support level around 1.16185.
Technical Reference: sell while below 1.16720
Potential Stop Loss 1: 1.16640
Potential Stop Loss 2: 1.16720
Potential Take Profit 1: 1.16270
Potential Take Profit 2: 1.16185
