The EURUSD currency pair appears to be under selling pressure this afternoon after failing to maintain the upward momentum post-breakout from a bearish resistance channel. The sharply declining direction of the Bollinger Bands indicates heightened volatility moving downwards, while the zigzag pattern beginning to form a bearish structure reinforces the signal of price weakening. This scenario suggests that the buying strength is not robust enough to sustain a breakthrough above the resistance levels, thereby allowing selling pressures to dominate intraday movements.
Technically, the failure of prices to hold above the breakout area serves as a warning that a bearish bias remains strong in the short term. If selling pressure continues, the EURUSD may retest the nearest support zone, where the price reaction at this level will be crucial for determining the next direction. Should the support be breached, more pronounced declines could occur; however, if prices manage to hold, the potential for a technical rebound may still play out before the primary trend resumes.
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On the 15-minute timeframe, the established bearish channel further emphasizes the dominance of sellers over EURUSD movements. The sharply declining Moving Average (MA) line indicates growing selling pressure, while the Stochastic indicator reversing down from the overbought zone signifies increasingly solid bearish momentum. With these technical signals supporting it, the EURUSD pair is likely to continue its downward trajectory towards testing a significant support level around 1.15745 shortly.
Technical Reference: sell when below 1.16450
Potential Stop Loss 1: 1.16335
Potential Stop Loss 2: 1.16450
Potential Take Profit 1: 1.15880
Potential Take Profit 2: 1.15745
