The EURUSD has struggled to maintain its bullish momentum after breaking through the upper boundary of the bearish channel on the 1-hour timeframe. Instead of continuing its ascent, the price has reverted to levels below the breakout area, suggesting a possible false breakout. This movement indicates that selling pressure is re-emerging, while the downward direction of the Bollinger Bands (BB) provides additional confirmation of weakening bullish momentum. The ZigZag structure that is beginning to form a downward pattern further underscores the signal that a reversal towards a bearish trend is underway.
Considering this combination of technical signals, the EURUSD may face continued selling pressure during the US session tonight. If the decline persists and the price fails to hold above the nearest support area, the likelihood of further weakening may increase towards the next support level. Nevertheless, a potential short-term technical rebound should still be anticipated, especially if buying activity occurs near the support area. However, as long as the price remains below the previous breakout high, the movement bias will continue to lean towards bearish.
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On the 15-minute timeframe, the bearish channel that has formed further emphasizes the dominance of sellers in the EURUSD movement. The sharply declining Moving Average (MA) line indicates increasingly strong selling pressure, while the Stochastic indicator’s downturn from the overbought area signifies that the bearish momentum is intensifying. With these technical signals in place, the EURUSD is positioned to continue its decline and test the significant support level around 1.15745 in the near term.
Technical Reference: sell while 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
