The EURUSD pair on the 1-hour timeframe is starting to exhibit signs of weakening after failing to uphold the higher high and higher low (HH-HL) pattern. The price action, which previously broke out of the bullish channel, has now reversed, signaling a shift in trend structure towards a weaker direction. Although it temporarily pierced the lower boundary of the Bollinger Bands, the price has since made a rebound towards the middle MA zone, yet it failed to maintain the upward momentum and has begun to decline from that level.
Current technical conditions indicate that the Moving Average line is trending downwards, confirming the short-term dominance of bearish pressure. If the selling pressure persists, there is a growing likelihood for EURUSD to test the next support zone. Traders are advised to monitor price reactions around that level, as any further break could reinforce the signals for a deeper bearish trend change.
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The breakdown of the bullish channel support signifies that the strength of buyers in EURUSD is beginning to wane. Selling pressure is becoming increasingly evident on the 15-minute timeframe, with a downward move in the Moving Average (MA) and the Stochastic indicator sharply declining from overbought territory. This combination of technical signals bolsters the potential for further decline, with EURUSD likely eyeing a test of immediate support around the 1.16295 level.
Technical Reference: sell below 1.16880
Potential Stop Loss 1: 1.16775
Potential Stop Loss 2: 1.16880
Potential Take Profit 1: 1.16395
Potential Take Profit 2: 1.16290
