The EURUSD is experiencing selling pressure tonight as the price failed to maintain its strength near the resistance level of 1.18040. The rejection at this level has triggered increased selling activity, which has become more apparent as we enter European trading this afternoon, indicating that the previous bullish momentum is losing steam, with sellers once again dominating price movements.
Technical signals further reinforce the bearish potential, starting with the formation of a bearish engulfing candle that suggests a short-term reversal. Moreover, the Moving Average showing a downward trend, the ZigZag pattern creating lower highs, and the MACD operating in negative territory provide additional confirmation that selling pressure remains significant in the near future.
Recommended
Recommended
Recommended
Recommended
This pressure has been confirmed as the EURUSD breaks out of the bullish channel and establishes a new lower low, marking a shift in market structure towards bearish conditions. With the clear dominance of sellers and weakening technical structure, the EURUSD is likely to continue its decline to test the support area at 1.16830, as long as the price remains below the critical resistance zone.
Technical Reference: sell while below 1.17540
Potential Stop Loss 1: 1.17400
Potential Stop Loss 2: 1.17540
Potential Take Profit 1: 1.16950
Potential Take Profit 2: 1.16830
