The EURUSD pair is facing considerable selling pressure after breaking below the lower boundary of the bullish channel, signaling a potential trend reversal towards a bearish outlook. The current price action indicates that this currency pair has struggled to maintain its critical support level, which may now act as a new resistance. Furthermore, the Moving Average (MA) indicates a weakening trend, with the price currently situated below the 24 MA, adding to the selling pressure.
The bearish confirmation is further supported by the MACD indicator, where the histogram is declining and the MACD line crosses below the signal line. This negative momentum signals that selling pressure remains dominant, opening up the possibility for EURUSD to drop further towards the next support level. Should the bearish pressure persist, the pair could test key levels around 1.0700 or even lower in the near future.
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On a 15-minute timeframe, the downward structure of EURUSD becomes more pronounced with the formation of lower highs and lower lows, indicating a strong bearish trend. The price is currently below the 24 MA, which acts as a dynamic resistance, reinforcing further weakening signals. If selling pressure continues, EURUSD may drop deeper towards the support level of 1.04320.
Technical Reference: sell while below 1.04930
Potential Stop Loss 1: 1.04795
Potential Stop Loss 2: 1.04930
Potential Take Profit 1: 1.04435
Potential Take Profit 2: 1.04320
