The EURUSD currency pair is facing selling pressure on the 1-hour time frame after hitting a new resistance level at 1.18040. The inability to maintain its strength at this level has led to ongoing selling pressure, especially as the price moves into the European trading session this afternoon. This situation indicates that selling interest is beginning to dominate the market once more, as the prior rally loses steam.
From a technical perspective, there is an increasing potential for bearish movement, characterized by the formation of a bearish engulfing candle, signaling an initial reversal. Furthermore, a downward-sloping Moving Average, a ZigZag structure creating lower highs, and a MACD positioned in negative territory add further support for the scenario of EURUSD weakening. As long as the price remains below this resistance area, the downtrend pressure is likely to continue toward the nearest support zone.
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The EURUSD indicates potential for further weakness after breaking out of a bullish channel and forming a new lower low, signifying a market structure shift toward bearish sentiment. This selling pressure is bolstered by a declining Moving Average and a ZigZag pattern that reflects a strong seller dominance. With these technical conditions, EURUSD has the potential to continue its decline, testing the support level at 1.16900 as long as prices remain under the previous upward trend line.
Technical Reference: sell while below 1.17550
Potential Stop Loss 1: 1.17435
Potential Stop Loss 2: 1.17550
Potential Take Profit 1: 1.17000
Potential Take Profit 2: 1.16900
