The EURUSD pair is showing signs of weakness again after failing to break through the resistance zone and unable to create a higher high – higher low pattern on the hourly chart. This situation indicates that selling pressure is starting to take over the market once more. After temporarily breaking below the Bollinger Bands’ low, the price managed to rebound towards the central moving average area. However, this upward movement could not sustain itself and instead retreated, reinforcing the downward trend. This failure is a signal that the buyer momentum is dwindling, while seller dominance is re-establishing itself.
From a technical perspective, the declining trajectory of the Moving Average (MA) further emphasizes the short-term bearish trend potential. The price structure maintaining a position below the MA line, coupled with ongoing downward momentum, suggests that EURUSD could continue its descent towards the nearest support level. If selling pressure remains strong without significant buying interest, the chances of revisiting lower support levels will expand significantly in the upcoming trading sessions.
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A breach of support within the bullish channel indicates that the buer presence in EURUSD is waning. Clear selling pressure is becoming evident on the 15-minute timeframe, where the Moving Average (MA) is trending downward and the Stochastic indicator is sharply descending from the overbought zone. This condition highlights a shifting momentum from bullish to bearish, increasing the likelihood of further declines in EURUSD. With rising selling pressure, this pair is poised to test significant support around the 1.16295 level in the near future.
Technical Reference: sell while below 1.16845
Potential Stop Loss 1: 1.16745
Potential Stop Loss 2: 1.16845
Potential Take Profit 1: 1.16370
Potential Take Profit 2: 1.16250
